But Steve Hanke, from the The Johns Hopkins University in Baltimore says the Baltic nations are running monetary policy consistent with a strong currency peg and should not give into devaluation pressure.
"The data speak clearly," Hanke wrote in the August issue of GlobeAsia, an Indonesian based publication.
"Latvia and its Baltic neighbors are not repeats of Argentina. Their economies have suffered greatly from a sudden stop of foreign investment and from recession in Western Europe, but they retain ample foreign reserves."
All three countries have foreign reserves to fully back their monetary bases (domestic money supply made up of circulating money and