The Lat is the currency of Latvia, the tiny Baltic country in huge difficulties. The authorities try to defend the peg of the local currency. Against the rest of the speculating universe.
We heard of reports stating that the government will come up with another plan in order to secure the lat.
In the mean time are local interest rates – better known as the Rigibor – soaring. Overnight rates are around 20% now.
Defending a currency is costly, because you do this through intervention and it’s a very tricky thing to do once the hunting season is open.
We heard of reports stating that the government will come up with another plan in order to secure the lat.
In the mean time are local interest rates – better known as the Rigibor – soaring. Overnight rates are around 20% now.
Defending a currency is costly, because you do this through intervention and it’s a very tricky thing to do once the hunting season is open.
Estonia and Bulgaria are other countries having their local currency pegged to the euro. But they are out the eurozone. Now, is it an advantage to be in the eurozone?
Ask the Irish: they were downgraded today because assets of banks are fast deteriorating. That’s the second time in less than 3 months.
Will the Irish government default on its debt? Prices of insurance against a default – the so called Credit Default Swaps (or CDS) – went up and up and up this morning. The will need the Irish luck...
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