Thu, 19 Nov 1998: Bank of Latvia considers pegging lat to euro…



He said fulfilling Maastricht Treaty criteria for EMU is a medium-term goal, and expects the country will be able to meet them in four to five years."We have already fully met the criteria for budget deficit, public debt and, in principle, also that for currency stability," Repse said. "We must be able to bring inflation down to a stable 3 percent by 2001-2002, and expect the interest rates of long term government bonds to follow the same decline within the same time frame."Repse said the SDR peg has "served us well," bringing less foreign exchange volatility than a peg to any single currency would have, thereby providing a cornerstone for tight monetary policy. "The case for our changing the existing arrangement would have to be very convi... Read the rest of this entry »

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