Thu, 21 Oct 1999: Lithuania to skip euro/dollar peg…



Reinoldijus Sarkinas also said that a devaluation of the litas would not be on the central bank's agenda when it prepared the next three-year monetary policy program for the country, and that the currency board regime would not be changed until mid-2001, at earliest. The litas is currently pegged to the dollar at the rate of four to one. This arrangement has a twofold impact on Lithuania: While the litas has been able to piggyback on the strength of the dollar in recent years, its strength has actually hurt exporters who are in dire need of finding new markets where the weak euro prevails.This decision marks a departure from the central bank's goal of pegging the litas to the euro/ dollar basket in 2000. Sarkinas explained that the basket w... Read the rest of this entry »

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