Monday, 12 May 2008
The State of Latvia
Inflation here is estimated at 15% per annum. Shopping is relatively expensive and on a par with Britain, yet the currency is stronger than the pound, 15% up on the exchange rate of last December when I visited the Baltic regions. It would not surprise me if the currency, the Lati, is heading for a devaluation, though the Prime Minister states that he intends interest rates to come down to 9% by the end of the year. Furthermore, corruption is not an unknown word in this country. We shall wait and we shall see!