Ai: I know it’s little bit outdated but it”s really important. This could be the start ot the big problem in Europe.
RIGA, June 3 (Reuters) - The Latvian treasury failed on Wednesday to sell any of the 50 million Latvian lats ($100.7 million) of various treasury bills offered for sale on Wednesday, the stock exchange said.
The failure to attract offers for the paper came as the Latvian market remained frozen due to worries about the currency, which some fear faces a devaluation, and amid central bank buying of the lat to keep it within its peg to the euro.
The treasury, which carries out its auctions via the stock exchange, had offered 20 million lats of paper maturing in July, 10 million lats in September, 10 million lats due in December and 10 million lats maturing in June 2010.
Sweden’s banks are seen as particularly exposed to a Latvian devaluation. So was the reaction on forex. The same reaction was seen in Hungary and Poland, ERM2 prospective member countries.
This is serious problem and could cause chain reaction, be cautious.
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