Macroeconomic Forecast Lithuania

Lithuania's stock of foreign currency reserves fell to EUR4.7bn in April according to latest data from the Bank of Lithuania, down from EUR5.6bn in February. With the financial account having hitherto proven to be insufficient in covering the current account deficit, there is a significant risk of the central bank's stock of reserves falling further over the coming months (which would add to pressure for a nominal devaluation of the litas). We forecast Lithuania's foreign currency reserves coming in at EUR3.9bn by end-year.

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