Little Risk of "Looming" Bulgarian Lev Devaluation - Report
The news came from an article in the Budapest Business Journal, which cites a report of Nordea, issued on Thursday.
Nordea, the biggest Nordic lender by market value, said in a report that speculation of a devaluation of Latvia's currency, the lats, may trigger similar concerns about Bulgaria, which, like Latvia, has a currency board system that involves a fixed exchange rate.
According to the article, a devaluation of Bulgaria's currency, the lev, is unlikely.
Bulgaria's EU membership and low labour costs will continue to attract foreign investment which will spur growth of more than 6%, the report read.
Bulgaria's currency is pegged at the rate of 1.955 lev per euro since July 1997, when it imposed the currency board system to recover from a financial crisis that closed one-third of the country's banks and fuelled inflation to 2,020%.
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