IMF Latvia currency is not the changes to the system-c.bank

The International Monetary Fund, Latvia is not asked to change its currency peg to the euro, the head of the central bank was quoted as saying on Wednesday.

The fears of a devaluation of the fund
the lat to Latvia have slipped into recession and to salvage its second biggest bank, Parex.

“There is no risk for this, the central bank governor said Ilmars Rimš?vi?s newspaper Latvijas Avize.” The IMF does not require any changes in exchange rates.

This is linked to the euro at a rate of 0.7028 euros, with a bandwidth of 1 percent. It was blocked at the end of the weakness of the banks, 0.7098, while nine weeks, and the Central Bank has more than 900 million euros to support it.

Rimš?vi?s said that the central bank the right to change the fixed exchange rate.

“Only the bad things that come from a lat devaluation of the exchange rate or a change: inflation is rising, the expensive raw materials, Latvian companies deteriorate because they are much to buy abroad,” he said.

Euro dives on  IMF rumors 
The euro has again profits, the small increase, on Wednesday amid concerns on the situation of public finances of the economy on the periphery of the euro area.

Rating agency Standard & Poor’s public debt in Greece, citing the erosion of competitiveness and a growing fiscal deficit.

These reports, that Ireland has been to seek the assistance of the International Monetary Fund, if the deterioration of the economic situation deteriorated.

The Irish authorities were quick to deny the rights of the reports but analysts said investors worried because it was the first time, proposals were made that the IMF intervention would be needed in the euro area.

The reports on the cost of ammunition, as speculation of a Euro-exit may be an option for some members of the group.

In fact, Geoffrey Yu at UBS, which reports are another blow for the monetary union.

He said, within the euro area has been increasing over the past year and the situation was not for the immediate future.

“We believe that further assessments of the measures is possible and represents a major threat to confidence in the euro, given that several important countries of debate and budget deficits,” said Yu.

Immersion in the euro area, industrial production and the prospect of a rate cut by the European Central Bank after the meeting on Thursday also held policy of the euro in the failures.

Late in New York, the euro fell to 0.2 per cent of $ 1.3160 against the U.S. dollar, 0.6% to Y117.12 against the yen and lost 0.7% to 0.9028 £ against the pound sterling.

Sterling also claimed that the British government announced up to £ 21bn of bank loans for small and medium enterprises.

“This could Sterling, that the lack of support from lending to businesses has a major problem in the UK, banks prefer to credit standards,” said Hans Redeker of BNP Paribas.

The pound rose 0.6% to $ 1.4575 against the U.S. dollar.

In the meantime, a sharp drop in U.S. retail increased the yen and the dollar weakened as a share of the market after the data release.

“The dollar reacted positively to the retail sales worse than expected report of increased risk aversion causes investors, for the traditional Safe Haven currencies the dollar and the yen,” said Michael Woolfolk of the Bank of New York Mellon.

The dollar rose 1.2% to CHF 1.2392 against the Canadian dollar and 0.5 per cent to $ 0.6612 against the Australian dollar.

The yen rose 0.4 percent to Y88.99 against the U.S. dollar, while 0.2 per cent rise against the Y129.70 books.