Turkey in critical stages as currency slides again ahead of elections
- 6 months ago
The Turkish lira has slumped by 5% as the country faces upcoming elections this weekend.
USD was at 5.569 lira earlier this morning which is a considerable rise from the 5.33 at yesterday’s close.
Weak central bank figures are much to blame for, revealing a dramatic decrease in international reserves, its net international reserves for the week ending March 22 sat at 142 billion lira ($24.7 billion), showing a near $10 billion drop in the first three weeks of March.
Meaning that the country has been eating up its reserves in order to stabilize its currency.
Some experts on Turkey are even suggesting that the IMF may very well have to intervene in a post-election Turkey as the numbers are bordering critical.
The Turkish currency has undergone a dramatic 24 hours as the government instructed national banks to withhold lira liquidity from the offshore swap market to prevent a steep fall in the lira.
The move aims to prevent short selling on the currency ahead of local elections on Sunday that are widely seen as a referendum on Turkish President Recep Tayyip Erdogan which some analysts expect to suffer heavy losses.
Source: Smart Trend Team