The article analyses the economic advantages and disadvantages Latvia, as well as the other relatively new EU member states, may potentially gain when joining the European Monetary Union (EMU). The theoretical part of the article provides analysis of the hindrances countries face, when participating in a cross-border trade, evaluates the existing theories on the optimal currency area, and scrutinizes the pros and cons for a country being a member of a currency union from microeconomic and macroeconomic aspects. Based on the theoretical background, there is generated a model, demonstrating the correlation between the volume of export and a number of exogenous factors. The statistical investigation proved that the developing countries go through the recent financial crisis smoother, when being members of the EMU. Therefore, the author concluded that the membership of the EMU would have a positive influence on the economy of Latvia.