BANKING CRISIS LEADS TO FALL IN LATVIAN MONEY SUPPLY.

Becauseof the Baltija Bank failure, Latvians have cashed in their Latviancurrency for foreign money, and this has led to a 9 percent dropin the country’s supply of domestic money in circulation, BNSreported June 26. Another result of this run on the national currencyis that the central bank is quickly losing its hard currency reserves,the basis for the relative stability of the lat up to now.

Lithuania’s Border Problems.