The coin is dedicated to Kuldiga, one of the eight Hanseatic cities of Latvia.

As early as the 9th century, merchants and craftsmen settled near the largest hillfort of the cours on the left bank of the River Venta. The name of Kuldiga (Goldingen) was first mentioned in chronicles when referring to the stone castle that crusaders started to build in the vicinity of the VecKuldiga hillfort in 1242. A town, however, was built next to the castle in the 14th century. Kuldiga was a member of the Hanseatic League and, from 1596 until 1616, the capital city of the Duchy of Kurland. The second half of the 15th century and the beginning of the 16th century were characterized by the city's economic growth. The golden age of Kuldiga was during the reign of Duke Jacob (1642-1682), when ships departed from the Kuldiga port to Western Europe. Kuldiga enjoyed direct trade with Holland, France and Spain. Crafts flourished in Kuldiga; a small shipyard and the first paper mill of Kurland were also built in the town. Devastated by the war fought between Poland and Sweden (1653-1667) and the Northern War (1700-1721), Kuldiga lost its importance and splendour. It was only in the 1920s and 1930s that Kuldiga started evolving rapidly. Kuldiga is unique for its rich cultural heritage: the historical centre (13th-19th centuries) is listed as a monument of city planning, and its old wood and stone buildings create the impression of scenic and architectural uniformity. The old town at the centre of Kuldiga is an architectural monument of national significance. Kuldiga also boasts many treasures of architecture: the gatehouse of the Kuldiga Castle, Duke's Pharmacy, St. Catherine's Church, Castle watermill, Holy Trinity Church, the bridge across the Venta, the mortuary bell-tower of St. Peter's Cemetery, and many residential buildings. Kuldiga is the only town of Latvia that has an authentic and homogeneous ensemble of wooden buildings of the 18th and 19th centuries. The castle ruins in the park of the town, remains of the oldest stone building in Kurland, have been designated an architectural monument of national significance.

The coin's obverse features Kuldiga's coat of arms, while its reverse bears representations of Kuldiga's cityscape and Hanseatic ships.