Latest topics
Turkish lira slides 5% to new record with little reprieve in sight
Page 1 of 1
Turkish lira slides 5% to new record with little reprieve in sight
2021-11-30 10:52
Shafaq News/ Turkey's lira plunged 5% to new depths against the dollar and euro on Tuesday, capping its fifth-worst month ever, after President Tayyip Erdogan repeatedly endorsed aggressive rate cuts despite widespread criticism and soaring inflation.
The lira has lost 45% of its value so far this year and 29% this month alone against the U.S. currency, which was boosted in late-session trading.
The volatile selloff in November puts it among the ranks of crises in 2018, 2001 and 1994, according to Goldman Sachs research.
The currency hit a record low 13.4515, exceeding the low it hit last week after Erdogan defended the monetary easing that most economists have called reckless. It stood at 13.35 versus the dollar at 1614 GMT and also touched 15.06 to the euro.
In response to the cuts to 15% in the policy rate, the opposition has called for a quick reversal and snap elections. Concerns about central bank credibility took another blow on Tuesday after a top official was said to have left his post.
Erdogan was set to discuss his new economic strategy in a televised interview on state-owned TRT later on Tuesday.
"Monetary policy is likely to remain under political influence and not tight enough to significantly reduce inflation, stabilize the currency and restore investor confidence," credit ratings firm Moody's said in a note.
Turkey's economy grew 7.4% year-on-year in the third quarter, according to official data released on Tuesday, in line with market expectations and boosted by retail demand, manufacturing and exports.
Erdogan and other government officials have stressed that while there may be price pain for a while, the monetary stimulus should boost exports, credit, jobs and economic growth.
Erdogan's most recent defence of rate cuts was Monday when he was quoted as saying he will never defend hikes nor compromise on the issue. Economists say the depreciation and accelerated inflation will derail Erdogan's plan.
Under pressure from Erdogan, the central bank has slashed rates by 400 basis points since September and is widely expected to ease again in December. Real rates are deeply negative at nearly 500 basis points.
A central bank source said on Tuesday that the executive director of the bank's markets department, Doruk Kucuksarac, had left his post and had been replaced by his deputy Hakan Er.
Kucuksarac did not immediately respond to a request for comment.
A banker who requested anonymity said his departure was further evidence of an "erosion and devastation" of the institution after this year's mass leadership overhaul and years of political influence on policy.
Erdogan sacked three monetary policy committee members in October. Governor Sahap Kavcioglu was only appointed to the post in March after the president fired his three predecessors in the last 2-1/2 years over policy disagreements.
November Inflation data will be released on Friday and a Reuters poll forecast that it will rise to an annual 20.7%, its highest level in three years, while economists forecast the lira slide will send inflation toward 30% next year.
Source: Reuters
https://shafaq.com/en/Economy/Turkish-lira-slides-5-to-new-record-with-little-reprieve-in-sight
*****************
>>>TNTBS's YouTube Channel<<<
RamblerNash- GURU HUNTER
- Posts : 24270
Join date : 2015-02-19
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
Sat Apr 13, 2024 11:51 am by Mission1st
» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
Sat Apr 13, 2024 11:45 am by Mission1st
» Russia aren't taking any prisoners
Fri Apr 05, 2024 6:48 pm by kenlej
» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
Wed Mar 27, 2024 6:02 am by Ditartyn
» ZIGPLACE
Wed Mar 20, 2024 6:29 am by Zig
» CBD Vape Cartridges
Thu Mar 07, 2024 2:10 pm by Arendac
» Classic Tony is back
Tue Mar 05, 2024 2:53 pm by Mission1st
» THE MUSINGS OF A MADMAN
Mon Mar 04, 2024 11:40 am by Arendac
» Minister of Transport: We do not have authority over any airport in Iraq
Mon Mar 04, 2024 11:40 am by Verina
» Did Okie Die?
Mon Mar 04, 2024 11:34 am by Arendac
» Hello all, I’m new
Wed Jan 31, 2024 8:46 pm by Jonny_5
» The Renfrows: Prophets for Profits, Happy Anniversary!
Wed Jan 31, 2024 6:46 pm by Mission1st
» What Happens when Cancer is treated with Cannabis? VIDEO
Wed Jan 31, 2024 8:58 am by MadisonParrish
» An Awesome talk between Tucker and Russell Brand
Wed Jan 31, 2024 12:16 am by kenlej
» Trafficking in children
Mon Jan 29, 2024 7:43 pm by kenlej
» The second American Revolution has begun, God Bless Texas
Mon Jan 29, 2024 6:13 pm by kenlej
» The Global Currency Reset Evolution Event Will Begin With Gold, Zimbabwe ZWR Old Bank Notes
Sun Jan 28, 2024 3:28 pm by Mission1st
» Tucker talking Canada
Wed Jan 24, 2024 6:50 pm by kenlej
» Almost to the end The goodguys are winning
Mon Jan 22, 2024 9:03 pm by kenlej
» Dinar Daily Facebook Page
Mon Jan 22, 2024 3:34 pm by Ponee