Turkey state banks prop up Lira ahead of Syria incursion

9 October 2019
285 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

Muslims to pray in front of Hagia Sophia to put pressure to revert historic site into a Mosque
SLIDE
shares30 views
SLIDE
shares30 views

Muslims to pray in front of Hagia Sophia to put pressure to revert historic site into a Mosque

makis - May 28, 2020

Muslim mosques in Turkey will be reopening from tomorrow, Friday, the day of the fall of Constantinople (Istanbul), with the…

Athens Open Air Film Festival promises unforgettable nights to movie lovers
ART
shares41 views
ART
shares41 views

Athens Open Air Film Festival promises unforgettable nights to movie lovers

Panos - May 28, 2020

The Athens Open Air Film Festival promises movie goers unforgettable cinematic experiences as the summer event organised for the tenth…

PM Mitsotakis welcomes European Commission aid proposal for coronavirus fallout
GREECE
shares41 views
GREECE
shares41 views

PM Mitsotakis welcomes European Commission aid proposal for coronavirus fallout

Panos - May 28, 2020

Greek Prime Minister Kyriakos Mitsotakis welcomed the European Commission’s proposal for a 750 bln euro aid package to fight the…

Leave a Comment

Your email address will not be published.