Turkish lira in free fall, German Handelsblatt writes
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
Explore the beauties of mainland Greece!Panos - Oct 23, 2018
Greece is a beloved destination and in addition to the more familiar islands, the mainland offers plenty of options for…
Ithaca: The Kingdom of OdysseusPanos - Oct 23, 2018
When Odysseus set off for glorious days in Troy, his beloved wife, Penelope, was left alone to unwittingly excite the…
Russia accuses the USA of bribing FYROM PMs over “Macedonian” dispute votePanos - Oct 23, 2018
The Russian Foreign Ministry has said that the US orchestrated an “unfair vote” in the FYROM parliament which approved the…