Gee, looks like that parade of blondes in Latvia accomplished, um, absolutely nothing.
Dow Jones: The financial crisis in Latvia escalated further Wednesday after the treasury failed to sell any of its debt securities on offer at an auction, adding to expectations that the country may be forced into an imminent devaluation of its currency, the lat.
The treasury failed to sell an offered 20 million lats ($40 million) worth of paper maturing in July, as well as LVL10 million maturing in September, LVL10 million due to mature in December and LVL10 million maturing in June next year, according to an announcement on Latvia’s main stock exchange.
Following on from a sharp move higher in the overnight interbank lending rate and recent reserve losses for Latvia’s central bank, the failed auction is the latest sign that the country’s currency peg to the euro may be under imminent threat, despite official denials from the authorities in Latvia.
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