Jun 02

Devaluation Imminent in Latvia?

Posted by Kristjan Velbri | Posted in Europe, Finance | Posted on 02-06-2009

EDIT: The author of the article was not Edward Hugh, but Claus Vistesen. Sorry for the mistake.
Claus Vistesen reports on the Latvian situation:
As a consequence of this and, arguably, a host of other things Bengt Dennis, a former Swedish central bank governor and an adviser to the Latvian government was quoted this weekend of saying that a Latvian devaluation is a done deal. The only question would be when and how.

Bengt Dennis, the former Swedish central bank governor and an adviser to the Latvian government on how to cope with the economic crisis, said the Baltic country will need to devalue its currency. “No one knows if there will be a devaluation tomorrow or in a few months — the timeframe is always uncertain — but we have moved beyond the question of whether there will be a devaluation and should instead focus on how it will be carried out,” Dennis told Swedish state television SVT last nigh….
The rest of the story can be found here and here (both links take you to the same story, the difference is the first link takes you to Mr. Hugh’s Eastern Europe blog and the second one to the Baltic blog).

Edward and Claus are one of the few foreigners who keep a keen eye on the Baltics. They is also the only one I know of to draw attention to Latvia’s problems as far back as 2007! If you’re interested in the recent developments in Latvia, I suggest you read Edward’s previous posts:
Danske Bank Warn On The Baltics
Payment By “Voucher” In Latvia?

In addition to that, he has blogs about the economies of Argentina, the Eurozone and more. The links to these can be found on his website, on the right sidebar. Finally, I leave you with this, what looks like to be Lithuania’s finance minister (from Lithuanian: What I see here? hmmm.hmmm. difficult question, doctor. maybe this is the devaluation of the litas?  [litas being the currency, of course])

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