The devaluation can be controlled

  • 2009-10-16
  • TBT staff from wire reports

RIGA - Latvia could arrange a controllable lat devaluation, such a statementwas made by Swedbank finacial director Erkki Raasuke in the interviewto a Swedish newspaper Dagens Industri. In his opinion, the effect ofthe uncontrollable devaluation would be wrecking, but the devaluationas a part of ERM-2 currency exchange mechanism could be easilycontrolled.

Raasuke thinks, that 15% devaluation could be realized with theassistance of International Monetary Fund, EU and Scandinaviancountries, taking in mind all delicacies the of this proccess.

The analyst agrees with the popular among Swedish banks opinion, thatin the near-term prospect lat devaluation can induce seriousproblems, nevertheless, the overall size of the losses will not bebigger, than in the case of saving the current course.