Image default
Greek News

Turkey’s currency reels under economic pressure

Turkey’s currency on Thursday plumbed record lows as Ankara reeled from the twin blows of being placed on a terrorism financing and anti-money laundering watch list and an interest rate cut that economists fear could spark hyperinflation.

One of the year’s worst days for the beleaguered lira started with a central bank decision to cut its policy rate to 16 from 18 percent despite rising inflation and a new surge of foreign currency buying by ordinary Turks.

The lira lost more than 2.5 percent against the dollar on fears the bank had lost its last vestiges of independence from Turkish President Recep Tayyip Erdogan — a renowned opponent of high interest rates.

“The sharp cut is completely unwarranted by the inflation outlook,” the Oxford Economics consultancy said in a note to clients.

See Also:

Alitalia flight attendants take off clothes in protest (video)

“The rate cut has exacerbated hyperinflation worries and investors decided to further abandon the Turkish lira as a result,” analyst Fawad Razaqzada of ThinkMarkets said.

Erdogan has been pushing the policy-setting bank to cut interests rates in order to boost lending and promote investment and economic growth.

This expansionist policy has helped Turkey’s economy grow throughout the coronavirus pandemic and perform far better than its emerging market peers.

Read more: yahoo

Σχετικα αρθρα

The Greek economy records an impressive growth rate of 13.4% in the third quarter, ELSTAT says

admin

Amazon: Greece in the club of technologically important markets with the new investment

admin

Travel Stocks Crumble Amid Omicron Fears (infographic)

admin

Construction of the longest highway in Europe is underway in Crete

admin

Ten Greek shipowners in Lloyd’s top 100 List

admin

Covid Put a Dent in the Unstoppable Rise of Black Friday (infographic)

admin

Teleworking during Covid pandemic boosted productivity, survey shows

admin

Apple blocks sale of iPhones in Turkey, as the Lira continues its slide

admin

20-Year Returns: Monster Eats Apple for Breakfast (infographic)

admin

Turkish Lira continues its fall hitting new record low

admin

Jeff Bezos’ Little Helpers (infographic)

admin

Greeks lead the global race in ship ownership with 17%

admin