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Why the Turkish lira collapses ?

“If you have dollars, euros, or gold under your pillow, go to the banks to be exchanged for Turkish liras. It is a national struggle. “On Friday, August 10, the Turkish president Recep Tayyip Erdogan, who continues to say that a “conspiracy” a stranger is responsible for the collapse of the Turkish lira, has once again called on his fellow countrymen to go to currency exchange offices to support their currency.

The downfall of it is dizzying and leaves now fear a contagion to financial markets. Indeed, it has plunged of almost 20 % on the single day of Friday, reaching briefly 6,87 dollar, its lowest historical level. Since the beginning of the year, it has lost 40 % of its value.

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Turkey : the pound falls to its lowest historical

The hemorrhage of the book has accelerated in recent days as a result of the serious diplomatic crisis with the United States, linked to the detention in Turkey of an american pastor. On Friday, the us president, Donald Trump has announced a massive increase in import taxes on steel and aluminium turks. These range respectively from 25 % and 10 % to 50 % and 20 %.

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