Roundup: Mandatory dual pricing ends in Lithuania

The period of mandatory price labeling in two currencies, the former national currency litas and the euro, has ended in Lithuania on July 1, nevertheless, many businesses plan to continue with dual price labeling on a voluntary basis.

"After July 1, approximately until October this fall, we plan to show prices in both currencies, litas and euro," Giedre Bielskyte, spokeswoman for Rimi Lietuva, one of the largest retail chains in Lithuania, said in an interview with local radio broadcaster Ziniu Radijas.

"This decision is based on consumers' interests since we can see that dual pricing is still relevant, people still convert euro to litas," she added.

According to Bielskyte, 65 percent of respondents polled in a special survey were in favor for dual pricing to stay in place until the end of the year.

However, some economists argue that the longer dual pricing is in place, the more difficulties it causes for people to adapt to the new currency.

The dual price labelling was mandatory in Lithuania from August 22, 2014 to June 30, 2015. Prices in two different currencies allowed residents to adapt faster to the new currency. Also, it was one of the means to protect consumers from potential abuses in price conversion processes.

Under a recommendation of the European Commission, dual price labelling should not last more than 12 months following the euro adoption, although a specific period of showing prices in two currencies is established and revised by the state itself.

According to Lithuania's central bank, from July 1 commercial banks will continue to exchange litas banknotes to euro free of charge. A number of 83 places of exchange are available in various country's towns and districts, the bank said.

Lithuania's central bank's cash desks in Vilnius and Kaunas will exchange litas coins and banknotes to euro for an indefinite period of time and without limits.

"The largest parts of litas cash in circulation has been exchanged, however, people will be able to exchange litas banknotes free of charge until the end of the year in commercial banks, placed in most of Lithuanian towns," Mindaugas Vilkelis, director of Cash service at Lithuania's central bank, was quoted as saying in a statement.

"Those who did not have time to exchange the money, should not worry and be in a hurry, there is enough time for that," he stressed.

According to him, some part of litas cash will probably not come back to the bank, because some of the cash was taken away to other countries or lost during fire or other accidents.

Lithuania adopted euro at the beginning of 2015.

The country's government considers joining the euro zone as an important economical and geopolitical project which completes Baltic region's integration into the European monetary system. Endit