Turkey state banks prop up Lira ahead of Syria incursion

9 October 2019
509 Views

The lira weakened as Turkey announced the beginning of a military offensive into northeastern Syria, stymieing efforts by state banks to buttress the currency through dollar sales.

The Turkish currency reversed earlier gains to trade 0.5% weaker at 5.8565 per dollar as of 5:20 p.m in Istanbul. Earlier, state banks sold U.S. currency around the 5.84 per-dollar mark, according to four people familiar with the matter, who asked not to be identified as the information isn’t public. They bought about $1 billion-worth of lira on Monday and Tuesday, according to two of the people.

The currency posted its biggest decline since early August on Monday, amid concern that Turkey and the U.S. were lurching toward a fresh diplomatic crisis over Ankara’s plans in Syria. While American President Donald Trump tacitly endorsed the operation on Sunday, a day later he threatened to “obliterate” Turkey’s economy if it did anything he considered “off-limits.”

The dollar sales may revive a debate about the strength of the central bank’s foreign-currency buffers, which surfaced in the weeks leading up to municipal elections in March. At the time, state banks were said to have sold between $10 billion and $15 billion to stem the lira’s depreciation.

You may be interested

The National Interest: Why is Cyprus still divided? – Analysis
DEFENCE
shares21 views
DEFENCE
shares21 views

The National Interest: Why is Cyprus still divided? – Analysis

Panos - Apr 19, 2021

The division of Cyprus is fast approaching the half-century mark. In fact, that division has now lasted longer than that…

Research suggests ancient Greeks might have sailed to Canada
GREECE
shares11 views
GREECE
shares11 views

Research suggests ancient Greeks might have sailed to Canada

Panos - Apr 19, 2021

The ancient Greeks could have reached Canada in 56 AD – almost a millennium before the Vikings. This is according…

Condition in eastern Mediterranean dominated Dendias, Shoukry meeting in Cairo
GREECE
shares42 views
GREECE
shares42 views

Condition in eastern Mediterranean dominated Dendias, Shoukry meeting in Cairo

Panos - Apr 19, 2021

Greek Foreign Minister Nikos Dendias was cordially welcomed by Egyptian Foreign Minister Sameh Shoukry earlier on Sunday in Cairo. The…

Leave a Comment

Your email address will not be published.