2023-06-17 02:27:21
The Turkish lira is heading for the longest streak of weekly losses in 24 years, at a time when the new economic team in Turkey is limiting its intervention in the currency market.
agency quotes”bloombergThe value of the Turkish currency fell by an additional 1 percent this week, following last week’s decline of 11 percent, following the beginning of its decline since early March, in the longest series of losses since 1999.
The decline accelerated following the re-election of President Recep Tayyip Erdogan on May 28.
In the 18 months leading up to the election, the central bank used nearly $200 billion in reserves to try to boost the currency, yet it remained one of the worst performing emerging markets.
Erdogan has now appointed two former Wall Street bankers, Mehmet Simsek and Hafiz Gay Erkan, to run the country’s finances, signaling a possible shift to reduce heavy state intervention in favor of letting the market determine the fair value of the currency, Bloomberg reported.
Foreign investors bought a total of $287 million in Turkish bonds and stocks last week, the largest influx since December, the latest central bank data showed.
Turkey’s annual inflation rate fell below 40 percent in May for the first time in 16 months, following touching 85 percent last year.
The Turkish “economic miracle” that existed in the two thousand years ended during the first decade of Erdogan’s rule, as foreign investors left for fear of instability and the seizure of institutions that were previously run by neutral technocrats.
1686982855
#Turkish #lira #heading #longest #streak #losses #years
