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An important detail in the Turkish currency crisis

10 44 15
14.08.2018

Let’s be frank: The Turkish Lira was already heading toward a crisis, but statements by United States President Donald Trump’s statements heated up the crisis further and accelerated its decline.

The night of Sunday, Aug. 12 was almost a nightmare for the depreciation of the Turkish Lira against the U.S. dollar and the euro. Following a report quoting President Recep Tayyip Erdoğan about “plans B and C” if industrialists would rush to banks to withdraw their dollars, the lira hit its lowest-ever value of 7.22 as soon as the New Zealand, Australian, and then Asian markets opened due to time difference. After Treasury and Finance Minister Berat Albayrak’s statements on Aug. 10 about a “new approach,” Erdoğan’s words were considered as if they signaled freezing foreign currency deposits in the banks.

A possible market crash was averted when Albayrak denied that possibility to Hürriyet’s Editor-in-Chief Vahap Munyar, who stopped the fall before midnight. That was seconded by the Turkish Central Bank, which........

© Hürriyet Daily News