Expectations of a new collapse of the Turkish lira and restrictions on foreign exchange exit

Expectations of a new collapse of the Turkish lira and restrictions on foreign exchange exit


 
12/08/2018

Economy News Baghdad:

Turkish citizens are awaiting solutions on Wednesday, the date set by the United States of America for Ankara as a deadline for the release of Pastor Andor Branson, who is under house arrest for alleged links to terrorist organizations .

"President Recep Tayyip Erdogan will not bow to Washington," the Turkish daily Jumhurit said on Sunday, expecting the pound to see further collapse against the dollar, which is expected to reach between 7.5 and 8 lira .

"There is strong news that banks will restrict foreign exchange, and citizens will not be able to withdraw their savings in dollars, euros or any foreign currency while they can withdraw their local currency equivalent, " she said.

In a related context, the Turkish president renewed, "his absolute refusal to raise the interest rate, which he described as an exploitative tool that makes the rich richer and the poor poorer ."

He stressed that his country "is preparing to use local currencies in trade exchanges with China, Russia, Iran, Ukraine and other countries with which we have the largest trade with them ."

Erdogan stressed that "Turkey is ready to establish the same system (the use of local currency) with European countries if they want to get out of the grip of the dollar ."

"We never accept this system that declares economic war to the whole world and imposes royalties on countries through the threat of sanctions, " he said.

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