Will Turkey's economic woes reach Europe?

10 August, 2018, 16:14 | Author: Regina Silva
  • Recep Tayyip Erdogan

The currency has lost more than 30% of its value so far this year.

Meanwhile, concerns were intensified on August 10 by a report in the Financial Times that the supervisory wing of the European Central Bank (ECB) had over the last weeks began to look more closely at eurozone lenders' exposure to Turkey. "Look at what we were 16 years ago and look at us now".

The lira pared some of its losses to trade at 5.9646 against the dollar at 0745 GMT, down 5.5 percent, after slumping as much as 14.6 percent to hit an all-time low of 6.4915 in early trade, according to Reuters data. Markets are deeply concerned over the direction of economic policy in Turkey where inflation has hit almost 16 percent while the central bank remains reluctant to raise rates in response.

Turkey will adopt a new economic approach under its executive presidency, one that will be decisive, sustainable and based on a "strategic mentality", Treasury and Finance Minister Berat Albayrak said on Friday. He has presented an economic action plan for the next 100 days.

"In most cases though, we suspect that this resilience will prove temporary", they said, highlighting expectations of rising USA interest rates and worries over growing USA protectionism.

‘Multiple fatalities’ in Canada shooting
At least four people were killed in a shooting incident in the eastern Canadian city of Fredericton, police said on Friday. Witnesses spoke of hearing four shots ring out from an address on Brookside Drive around 8.20am local time.


No rockets or airstrikes as fragile Gaza truce lasts through the night
Police said they found the remnants in an open area on the outskirts of the city of Beersheba and that no one was hurt. A Palestinian official with knowledge of the ceasefire talks said Thursday that the truce was to begin at 20:45 GMT.


Confused about Iggy Azalea's relationship status? So are we
Iggy Azalea's days of playing the field are done because she has a new man in her life. When they asked: 'Are you her boyfriend?' he replied: 'yes indeed'.


A new analysis by Berenberg Bank sees little long-term impact of high Turkish inflation and low interest rates on eurozone gross domestic product (GDP) growth.

European economist Carsten Hesse said Friday that even if the export of goods to Turkey falls 20 percent that would take no more than 0.1 percentage point from annual GDP in the 19 countries that use the euro currency.

In fact, TRY once again drops below the 6.0 mark after Erdogan said the country faces a wave of artificial financial instability.

An analyst at Berenberg bank in London is downplaying the risks to Europe's economy from Turkey's currency turmoil, saying the impact on trade would be small.

"Many of these European banks have their own non-performing loans and liquidity issues to deal with themselves".

Recommended:



Popular

French rescuers evacuate 750 campers amid flash floods
Supported by four helicopters, more than 400 firefighters and paramilitary officers were mobilized for the rescue operation. A 70-year-old German man was said to be missing after reportedly being swept away inside his van at one campsite.

Winners And Losers From The Premier League Transfer Window
Champion Manchester City had already signed winger Riyad Mahrez for a club-record 60 million pounds from Leicester . Mourinho also needs to check on the fitness of those that returned late from the World Cup.

NFL National Anthem Protests: Players Kneel, Raise Fists In Thursday Games
He said the team didn't agree with his belief that National Football League players should stand during the anthem. Players have criticized Goodell's ban, calling it an infringement on their right to protest peacefully.

Baker Mayfield’s First NFL Preseason Game Is Over
After that, it was easy pickings for Njoku, who ran past Ogletree for an uncontested 36-yard touchdown pass from Tyrod Taylor . The Browns flew to East Rutherford, New Jersey to take on the New York Giants and an offseason of hype finally hit the field.

First Lady Melania Trump's Mom & Dad Become US Citizens
Although Melania started from humble roots, she launched a successful modeling career prior to her marriage to the president. Green cards can also be obtained through employment, receiving asylum or refugee status, or in other special circumstances.

Saudi decision to withdraw scholarship students will affect dozens in Calgary
Maritime universities are keeping a very close eye on a sudden and serious diplomatic spat between Canada and Saudi Arabia. But, our correspondent adds, during the recent crackdown on activists he has also shown that he will not tolerate dissent.

Oops, wrong Tommy Fleetwood: European Tour pays $230k to another golfer
He was not positive it was the same amount that Tommy won at the Open but we checked and it was. I wouldn't even know if I'd been paid or not because I don't really look .

Kourtney Kardashian steps out showing ex Younes Bendjima what he is missing
She insisted that their eyebrow-raising photos - which show Bendjima wrapping his arms around Ozuna on the beach - were platonic.

'Crazy Rich Asians' looks beyond Asia to break Hollywood mold
Meanwhile, Awkwafina took an Old Hollywood approach to red carpet fashion by wearing a dusty pink Reem Acra ballgown. Stephanie Foo from Vox : "I'm Malaysian, and nobody in my family is a billionaire".

Ellie Goulding announces engagement to Caspar Jopling | National Entertainment
She said: "I am very happy but I do realise you need some darkness to draw on to create the best music". A notice in Tuesday's Times of London newspaper announces the engagement of "Caspar, son of The Hon".