Record low for the Turkish lira against a background of tension with the United States

The Turkish lira keeps losing its value for several months (Photo by OZAN KOSE. AFP)

The Turkish lira reached Tuesday, a record low on the currency markets, against a background of tensions with the United States, and related to the upcoming trial of a businessman and a banker turks in New York.

Turkey’s currency has lost more than 1% of its value in morning trading at 3.97 pounds against a dollar at a little before 07: 00 GMT, a new record in the fall, before recovering very slightly at 3.96 pounds to 08: 00 am GMT.

In an attempt to stem the fall, the central Bank has decided to reduce to zero the limit of borrowing of banks on the interbank market for transactions in the day-to-day from Wednesday, as well as the increase of the facilities of liquidity at the day-to-day.

Tensions between Washington and Ankara, already bright, are mounted a notch in recent days with the approach of the trial, which is due to open in early December, Reza Zarrab, a businessman in Turkish-iranian arrested last year in the United States. He is accused, with the banker Turkish Mehmet Hakan Atilla to have violated the u.s. embargo against Iran.

This trial raises fears of a possible impact on the Turkish banking sector, including the public bank Halkbank, where Mr. Atilla held at the time of his arrest in the United States the functions of deputy director general in charge of the management bank for international.

If the Turkish economy recorded a growth rate of more than 5%, according to official figures, inflation is approaching 12% and the Turkish lira keeps losing its value for several months.

President Recep Tayyip Erdogan scolded the central Bank on Friday, pressing for lower rates to encourage borrowing in the hope of supporting the growth by consumption and investment, while the country is already immersed in an atmosphere of electors to two years of important elections.

Like this post? Please share to your friends:
Leave a Reply