Moody's: Turbulence for Latvian currency

Speculation has grown over the past few weeks about a possible devaluation of the Latvian currency, Moody's Investors Service said in a special report.

But, devaluation is likely to be avoided in the near term, the agency said.

The net benefits of devaluation are highly questionable, hence the determined bid of local authorities to maintain the currency peg in spite of the painful adjustment required to do so, Moody's said.

There also is a financial and political commitment from the international community to support the peg through the turbulence, the agency added.

Moody's also stressed the possibility of a devaluation cannot be ignored, as the economic and social pressure in Latvia will continue to be elevated for some time.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.