Analysing Estonia's kroon devaluation scare

  • 2007-12-12
  • By Morten Hansen
It happened again… Leading up to the weekend of Nov. 24 - 25 messages on some Russian-language Web sites indicated a soon-to-happen devaluation of the Estonian kroon. This led to the expected outcome: Concerned people flocked to currency exchange places to sell kroons and buy euros. This follows a similar incident in Latvia in February in which text messages warned of an imminent devaluation of the lat. In both cases the mechanism was the same: Make the "warning" just before a weekend 's this is crucial. During the weekend commercial banks and the central bank are closed, and thus the m...
The article you requested can be accessed only by subscribing to the online version of The Baltic Times. If you are already subscribed to The Baltic Times, please authorize yourself.

In case you don't have a subscription yet - please visit our SUBSCRIPTION section