2023-06-05 08:07:08
The Turkish lira weakened nearly 1% on Thursday (June 5), reaching 21.1 lira per US dollar. Despite the appointment of Mr. Mehmet Simsek, which financial markets have confidence in as Minister of Finance of Türkiye.
Simsek, 56, said following his appointment yesterday (June 4) that Turkey had no choice but to return to a sensible economic path.
Archyde.com reports that The move is seen as a sign that President Recep Tayyip Erdogan’s newly-elected government is turning away from its bizarre approach to cutting interest rates. In the midst of high inflation, the lira currency has been depreciating for a long time.
Mohammed Elmi, Senior Portfolio Manager for Emerging Markets Fixed Income at Federal Hermes, said: “The hope is that Simsek will be able to provide the economic stability that Turkey so desperately needs. and engage with the market more effectively.”
Mr Elmi stated that Turkey’s annual consumer price inflation rose more than 85 percent last year to its highest level in 24 years, and inflation stood at 44 percent in April. It is a sign that Turkey needs more tight financial controls.
In addition, Mr. Elmi also stated that If Türkiye reverts to a credible economic policy It will greatly increase the attractiveness of investors. And Turkey’s long-term outlook remains positive due to factors such as its young population. rising middle class and the country is in a strategic location
By InfoQuest News Agency (05 Jun. ’23)
Tags: Lira, Türkiye
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