Latvia 1 RUBLIS from 1919 Banknote P-2b

After the Republic of Latvia was founded on 18 November 1918, the following currencies were in circulation: ostrubles and ostmarks, issued by the German occupational authorities, German marks, the "tsar" rubles and kopecks, "money of Duma" and "kerenkas", as well as promissory notes of several town municipalities.

On 11 December 1918 the Minister of Finance set the official conversion rate for the currencies in circulation, recognising three different foreign currencies as legal tender in Latvia. However, Latvia still had no money of its own. It was time to create its national currency.

On 22 March 1919 the Provisional Government of the Republic of Latvia empowered the Minister of Finance to issue Latvia's first banknotes: Latvian State Treasury notes and exchange notes, naming them Latvian rubles and Latvian kopecks respectively. From April 1919 to October  1922 the above notes were issued in the denominations of 1, 5, 10, 25, 50, 100 and 500 rubles, and 5, 10, 25 and 50 paper kopecks. The banknotes were designed by Latvian artists Jūlijs Madernieks, Burkards Dzenis, Vilhelms Krūmiņš, Hermanis Grīnbergs, and Rihards Zariņš. Thus the basis for a permanent Latvian monetary system was laid, although Russian and German money still also functioned as legal tender in Latvia.