Limited boost to euro from Lithuania litas repeg

LITHUANIA - The euro will get little more than a psychological boost from Lithuania's move towards pegging its litas to the euro as the accompanying shift in foreign exchange reserves is not seen generating much demand for euros.

The Lithuanian parliament on Apr 5, 2001 passed amendments to the country's currency laws which should clear the way to the litas being re-pegged to the euro from its current dollar peg, with January 1 2002 tagged as a possible date for the change.

The move would invol