Turkish lira in free fall, German Handelsblatt writes

10 April 2018
378 Views

The Turkish Lira is in a free fall due to the central bank’s decision to adhere to the dictates of Turkish Recep Erdogan, German newspaper Handelsblatt claims.

“The price of the Turkish lira is breaking one negative record after another. For the first time in history, today (April 9) the euro is worth more than five liras. The Turkish currency also recorded a new negative record in relation to the US dollar”, the paper writes.

Experts attribute the fall mainly to the high current account deficit and low real interest rates.

Although economic growth has strengthened, the Turkish central bank does not offset the low real interest rate with significant interest rate hikes but is adopting requests from the Turkish President. Pundits warn of the economy “burning out”, as cheap loans outweigh demand and may lead to stagnation or even recession, the German newspaper notes.

You may be interested

OECD: High taxes in Greece a break on economic growth
FINANCE
shares17 views
FINANCE
shares17 views

OECD: High taxes in Greece a break on economic growth

Panos - Jan 17, 2019

The OECD was the latest international body this week to sound the “warning bells” over the heavy tax rates now…

Two in three Greeks want elections now, nationwide Marc poll shows
GREECE
shares12 views
GREECE
shares12 views

Two in three Greeks want elections now, nationwide Marc poll shows

Panos - Jan 17, 2019

Two in three Greeks said were in favour of general elections immediately, according to a nationwide poll conducted by Marc…

Greek government survives no-confidence vote
GREECE
shares15 views
GREECE
shares15 views

Greek government survives no-confidence vote

Panos - Jan 17, 2019

The Greek government has survived a no-confidence vote with 151 MPs backing the SYRIZA-led government and 148 voting against PM…

Leave a Comment

Your email address will not be published.