Turkish lira crashes to new low against the dollar

24 May, 2018, 17:27 | Author: Cecil Buchanan
  • How Turkey Is Heading Toward a Currency Crisis

The lira has lost more than 20 percent of its value against the dollar since the start of the year.

"The partial volatility in the currency is certainly not consistent with the economic realities of Turkey", he said, pointing to Turkey's 7.4 percent growth rate and other indicators.

The lira weakened to over 4.80 per dollar on Wednesday, down some 5 percent since the previous day.

The Turkish lira tumbled 5 percent against the USA dollar earlier in the day, doubling down fears of a full-scale currency crisis after a Fitch statement warned that curtailing the Central Bank's independence will inflict pressure on Turkey's sovereign credit profile.

The currency is now trading at 4.8 per dollar, with pressure on the central bank to hike interest rates as the lira goes into free-fall.

"Current elevated levels of inflation and inflation expectations continue to pose risks on the pricing behavior", the Central Bank said in a statement after the meeting.

"Accordingly, the committee made a decision to implement a strong monetary tightening to support price stability", it added, according to BBC.

"It's impossible to say that the recent fluctuations in the foreign exchange rates are correlated to Turkey's macroeconomic figures", he said.

Graeme McDowell, three other Ryder Cup veterans added to Thomas Bjorn's staff
I know that I can contribute a huge amount to the team this year given my experience at the venue and appearances in past Ryder Cups.

Cohen distances himself from business associate who struck plea deal
Cohen is under investigation by federal prosecutors, who last month conducted searches on his office and other locations. By 2003, Cohen owned a fleet of 200 taxi cabs, working in partnership with a Ukrainian immigrant named Simon Garber.

Unai Emery opens up on replacing Arsene Wenger
Arteta was the favourite last week and he expected to be given the opportunity, despite his lack of managerial experience. Before his time in France he spent three years at Sevilla , winning three consecutive Europa League trophies.

Erdogan has always painted himself as a champion of the Turkish economy, pointing to how growth and investment have expanded under his rule after the misery of Turkey's 2000-2001 financial crisis.

"A tight stance in monetary policy will be maintained decisively until the inflation outlook displays a significant improvement", it added. The borrowing rate was kept at 0 percent while the lending rate was increased from 13.50 to 16.50 percent.

Dragging on the Turkey market outlook, the lira currency has tumbled to record lows in recent weeks and weakened by more than 20% against the United States dollars so far this year and depreciated 70% over the past five years.

"Comments from the Turkish President [Recep Tayyip Erdoğan] raise the possibility that discretionary policymaking and policy predictability will come under pressure after June's elections", Fitch stated, referring to Erdoğan's remarks in London last week.

Turkey's central bank is set to meet on 7 June to discuss monetary policy, with pressure on the body to sharply increase interest rates.

"The central bank has hiked interest rates several times over the past few years to shore up the currency".

Erdogan said necessary measures would be taken to decrease the inflation rate and reduce the currency deficit soon after the elections.



Lee Westwood is Bjorn again in Ryder Cup role
Donald is missing with a back injury but Bjorn would be happy if any of the four made the team on merit and had to hand back their vice-captains' bib.

Media push back against EPA limiting reporters at chemical summit
Pruitt's remarks at the meeting were listed on his public schedule and described as being open to the press on a federal daybook of events.

Small Banks See Big Win as Congress Rolls Back Stifling Regulations
The legislation also exempts certain banks and credit unions from requirements to report some mortgage loan data. The Senate Democrats forced the Judiciary committee to vote on the Extreme Risk Protection Order bill.

US Trade Deal With China 'Moving Along Nicely'
Treasury Secretary Steven Mnuchin denied that his government is offering relief for ZTE in exchange for trade concessions. But it then went a step further to impose a seven-year ban on United States companies buying and selling ZTE products.

Serena Williams will nearly certainly be seeded at this year's Wimbledon championships
Former world number five Eugenie Bouchard has already failed in her quest, retiring hurt against Dalila Jakupovic on Wednesday. Fourth-ranked Elina Svitolina, who retained her Italian Open title on Sunday, was also supportive of seeding Williams.

Wentz says he'll go to White House, throws passes at OTAs
I've never obviously had an injury of this magnitude with this type of timetable for return and everything", said Wentz. While he's "antsy" to be healthy and ready to roll, he knows he must continue to capture these small wins every day.

National Football League owners to vote on changes to anthem policy
DeBartolo Memorial Scholarship Foundation celebrity dinner and auction Friday night. "He's fired, '" Trump said a year ago . The Game Operations Manual will be revised to remove the requirement that all players be on the field for the Anthem .

Jared Kushner: Security clearance restored for Trump's son-in-law
Lowell said Kushner answered all questions and "is looking forward to continuing the work the president has asked him to do". President Trump's son-in-law and senior adviser, Jared Kushner , got his white house security clearance back on Wednesday.

S.Korean journalists to visit DPRK for covering nuke test site dismantling
Yesterday, Mr Trump said there was a " substantial chance " the summit would not take place as planned. Trump said whether the meeting will be held as scheduled will be determined "pretty soon".

Hawaiian Authorities Work to Protect Power Plant From Lava Flow
Kilauea volcano has destroyed almost 50 structures and forced more than 2,000 evacuations since its eruption began on May 3. On Monday, lava entered and then stalled on the property of a geothermal plant near one of Kilauea's new volcanic vents.