Taking into account the exchange rates between the currencies in the SDR basket and the fixed exchange ratio between the lats and the SDR basket, the official lats’ rate against the other currencies, including the euro, is also determined every business day.
Since the mutual exchange rates of the principal world currencies, which are all part of the SDR basket - the US dollar, euro, Japanese yen and British pound sterling - are constantly, and often significantly, fluctuating in the global currency market, the exchange rate of the lats against the US dollar, euro and other currencies undergoes similar fluctuations (Fig. 5.*).