Hi there. Im living at the region so I decided to share some interesting facts with you. Read this articles http://www.balticbusinessnews.com/D...rticleID=c70f4fe7-1f9b-4495-bba8-b32a219c81b7 and http://www.balticbusinessnews.com/Default2.aspx?ArticleID=377fe2cf-f287-40c9-abe1-437170589436 right.. were did we all hear it. Wasnt it sterling story about how Bank of E. was desperatly supporting the national currency and ended devaluating it? And there was also one fella who made a buck by shorting sterling.. I do see some similarities here.. not some but a lot! just some food for the brains..
to those who may be interested: www.bank.lv http://www.bank.lv/eng/main/all/statistics/lbfinfo/arres/arres1/ it does look bad.. check out how central bank reserves are draining down by supporting local currencies http://www.ntspekuliantai.lt/files/upload/2 rezervai.JPG its the link from one of the article, but I dont think you will understand the language its written... on friday I called one of the regions bank treasury dep. I asked them to price the FX swap with term of 240 days.. the rate they gave me was 0.725 for buying EUR. but the thing is that lat is pegged to EUR and theoretically cannot be 0725... it can float max 1% from its mean which is 0.7028 there are HUGE odds, HUGE priced-in devaluation.. but if devaluation happens, offcourse it wont be 5prc. it should be atleast 50% . check out what other very similar economies to baltics did to their currencies: http://www.ntspekuliantai.lt/files/upload/1 Valiutu kursai.JPG I think I dont need to tell you how to benefit from the whole thing if it will happen... If there are any participants who has deeper knowledge or experience in this kind of monetary things I would appreciate comments... have a nice w/e
NY Times wrote a piece on Latvia not so long ago http://www.nytimes.com/2009/05/24/world/europe/24latvia.html?_r=2&ref=business Sounds pretty bad. Good luck to you.
ou buoy.... :eek: http://www.balticbusinessnews.com/D...438cb460-eb2a-444f-ba53-0e6d8a8cfba2&open=sec
Latvian government failed to sell any of its government debt securities on Wednesday. http://www.forbes.com/2009/06/03/latvia-sweden-economy-markets-economy-scandinavia.html