The article presents Lithuania's road to the membership in the European Exchange Rate Mechanism II. It focuses on the evolution of the exchange rate system in Lithuania and its impact on the macroeconomic situation. The chronology of changes in the Lithuanian exchange rate system shows that despite doubts as to the justified application of the currency board, the solution turned out to be effective in gaining ERM II membership.

The article also outlines theoretical premises for the selection of a fixed exchange rate regime in the form of a currency board. Even such a short overview of the most important determinants of this exchange rate regime shows that Lithuania has made the right decision. The stability of the Lithuanian lit was not threatened even by the transition of reserve currency from dollar to euro in 2002. Appropriate activities of monetary authorities helped avoid any pressures that could have occurred on the financial market for fear of the lit devaluation.

It seems that Lithuania's ten years of experience in the use of the currency board will entail lit's secure membership in ERM II. Simultaneously, the currency board will contribute to meeting one of the Maastricht criteria and will enable Lithuania to become member of the euro zone.