In 1920, on 23 March, an order was issued establishing Latvia’s state gold fund. The new state was still using the Latvian ruble amid inflation and the circulation of several foreign currencies, so accumulating gold, silver, foreign currency, and valuables was a practical step toward a trustworthy monetary system. Later, this fund helped stabilize the ruble and laid the groundwork for the introduction of the lats – one of interwar Latvia’s notable financial successes.

After the War of Independence, Latvia had to build not only borders and an army, but also a trusted currency. The gold fund became one of the instruments that helped the country move from chaotic postwar monetary circulation toward a more stable national financial system.