VILNIUS, March 8 (Reuters) - Lithuania's central bank on Sunday reassured investors about the stability of litas currency after reports of a sharp rise in buying of foreign currency.
Lietuvos rytas, the daily newspaper, said on its website on Sunday that people rushed to swap litas into euros, dollars and British pounds over the weekend, forcing some bank branches to run out of those currencies.
Lithuania central bank spokesman said the bank had no information on how many litas were sold, but he said there were no reasons for panic.
'Litas rate will remain unchanged,' he said quoting the central bank governor Reinoldijus Sarkinas.
The litas has been pegged to euro since 2002 at a rate of 3.4528 litas to 1 euro.
'We ran out of euros and dollars on Sunday morning, as there were more people than usual buying currency, but it is calm now,' a clerk at the Parex bank currency exchange told Reuters on Sunday late night.
The litas selling started on Saturday, the daily said.
Belarus devalued its rouble by 20 percent in a surprise move on New Year's Day.
The daily said devaluation rumors spread following remarks by Kestutis Glaveckas, the head of parliamentary finance and budget committee.
Glaveckas told a press conference on Thursday that litas was strongly overvalued, and its rate relative to the euro could be changed when Lithuania eventually adopts common currency.
He later told Reuters he was against devaluation himself.
Lithuania failed to meet inflation criteria to adopt the euro in 2007 and it now targets 2012 as its euro entry date.
Latvia, which had to borrow from the International Monetary Fund and the European Union after crashing into recession, is also eyeing 2012. Estonia wants to be ready by 2011.
(Reporting by Nerijus Adomaitis; Editing by Derek Caney) Keywords: LITHUANIA CURRENCY/ (nerijus.adomaitis@reuters.com; +370 641 913 86; Reuters Messaging: nerijus.adomaitis.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Lietuvos rytas, the daily newspaper, said on its website on Sunday that people rushed to swap litas into euros, dollars and British pounds over the weekend, forcing some bank branches to run out of those currencies.
Lithuania central bank spokesman said the bank had no information on how many litas were sold, but he said there were no reasons for panic.
'Litas rate will remain unchanged,' he said quoting the central bank governor Reinoldijus Sarkinas.
The litas has been pegged to euro since 2002 at a rate of 3.4528 litas to 1 euro.
'We ran out of euros and dollars on Sunday morning, as there were more people than usual buying currency, but it is calm now,' a clerk at the Parex bank currency exchange told Reuters on Sunday late night.
The litas selling started on Saturday, the daily said.
Belarus devalued its rouble by 20 percent in a surprise move on New Year's Day.
The daily said devaluation rumors spread following remarks by Kestutis Glaveckas, the head of parliamentary finance and budget committee.
Glaveckas told a press conference on Thursday that litas was strongly overvalued, and its rate relative to the euro could be changed when Lithuania eventually adopts common currency.
He later told Reuters he was against devaluation himself.
Lithuania failed to meet inflation criteria to adopt the euro in 2007 and it now targets 2012 as its euro entry date.
Latvia, which had to borrow from the International Monetary Fund and the European Union after crashing into recession, is also eyeing 2012. Estonia wants to be ready by 2011.
(Reporting by Nerijus Adomaitis; Editing by Derek Caney) Keywords: LITHUANIA CURRENCY/ (nerijus.adomaitis@reuters.com; +370 641 913 86; Reuters Messaging: nerijus.adomaitis.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.