tldrdaily.news logo
Tag

Lira

All articles tagged with #lira

finance1 year ago

"Turkish Central Bank Shocks Markets with 500-Point Interest Rate Hike to 50%"

Turkey's central bank surprised the market by raising interest rates by 500 basis points to 50%, citing a deteriorating inflation outlook and pledging further tightening if necessary. The move, ahead of local elections, signaled the bank's independence and determination to tackle soaring inflation. The lira rallied and bonds also saw gains in response. The bank has now raised its key one-week repo rate by 4,150 basis points since last June, and indicated it will maintain a tight monetary stance until a sustained decline in inflation is observed.

via Reuters|
#central-bank#finance#inflation
financeeconomy2 years ago

"Turkish Central Bank Raises Interest Rate to 45% Amid Inflation Surge and Foreign Currency Risk"

Turkey's central bank raised its key interest rate to 45% in response to soaring inflation, with the country's currency, the lira, hitting a new record low against the U.S. dollar. This marks the eighth consecutive hike since May 2023 and comes ahead of local elections in March. The lira has lost more than 80% of its value against the dollar over the last five years, and analysts predict this may be the last hike for some time.

via CNBC|
#central-bank#financeeconomy#inflation
economy2 years ago

Turkey's Forex Depositors Return in Droves, Abandoning Lira Scheme

Turkish depositors have largely converted their funds back to dollars after withdrawing from state depreciation-protected accounts, as Ankara begins winding down the scheme. The scheme, known as KKM, was adopted in 2021 to halt the lira crash but has faced challenges as the lira has continued to depreciate. Initial data and senior bankers suggest that around two-thirds of the accounts that were initially converted to lira have been converted back to forex, while the rest moved into regular lira accounts. The central bank aims to reduce the volume of KKM accounts to strengthen its monetary transmission mechanism.

via Reuters|
#currency-depreciation#depositors#economy
business2 years ago

Turkish Lira Hits Record Low Amidst New Economic Policies.

The Turkish lira fell by over 7% against the dollar to a record low, signaling a potential shift in the government's economic policy. President Erdogan has been trying to prop up the lira, but the appointment of new finance minister Mehmet Simsek suggests changes are in store. Turkey's economy has been struggling with huge debts, an inflation rate of just under 40%, and a declining currency. The falling lira makes everything the country imports more expensive and can push businesses and households that have borrowed in dollars into bankruptcy.

via The New York Times|
#business#economy#lira
finance2 years ago

Turkey's move towards free market causes 7% drop in Lira.

Turkey's lira plunged 7% to a record low on Wednesday in its biggest selloff since a historic 2021 crash, a move traders said is a "strong signal" that Ankara is moving away from state controls toward a freely traded currency. The currency has come under increasing pressure since President Tayyip Erdogan was re-elected on May 28. Erdogan signaled a u-turn at the weekend when he named Mehmet Simsek, a former deputy prime minister who is well regarded by foreign investors, as finance minister. Given the heavy selloff, some analysts said the central bank might hold an emergency meeting to hike interest rates.

via Reuters|
#currency#finance#free-market
business2 years ago

The Turkish Lira's Rollercoaster Ride Under Erdogan's New Presidency.

Turkey's plunging lira could signal an economic turnaround as it makes exports cheaper and reduces imports, leading to a boost in the country's current account balance. The lira has lost over 40% of its value against the dollar this year due to high inflation and political tensions. However, the government's recent reforms and the central bank's interest rate hike have helped stabilize the currency.

via Al-Monitor|
#business#economy#inflation
finance2 years ago

Turkish Lira Plummets Amidst Push for Free Market Policies.

Turkey's lira has fallen 7% to a record low as the newly elected government appears to be loosening currency stabilizing measures in its switch to more mainstream policies. The appointment of Mehmet Simsek, a former deputy prime minister, as finance minister signals a move away from unorthodox rate cuts despite high inflation. The country is also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded interest rate cuts under Erdogan's policies. Turkish authorities hope foreign investors will return, but market watchers caution that Erdogan has changed his mind on conventional policies in the past.

via CNN|
#central-bank-governor#currency#finance
finance2 years ago

Turkish Lira Continues to Plummet Amid Economic Concerns and Political Uncertainty

Turkey's currency, the lira, has weakened as economists warn of an economic challenge ahead. The country's economy has been hit hard by the COVID-19 pandemic and high inflation rates, leading to concerns about its stability. Economists are calling for structural reforms to address these issues and prevent further economic decline.

via Financial Times|
#economic-challenge#economists#economy
finance2 years ago

Erdogan's re-election sends Turkish lira to new low.

Turkey's lira hit a new record low against the US dollar after President Recep Tayyip Erdogan won the presidential election, extending his rule into a third decade. The lira has lost more than 90% of its value over the past decade, with the economy in the grip of boom-and-bust cycles and rampant bouts of inflation. Erdogan's victory has seen further pressure on the Turkish lira, despite Turkish stocks enjoying gains. Critics blame the years of economic turmoil on unorthodox economic policies, which the opposition had pledged to reverse.

via CNN|
#currency-crisis#economy#finance
business2 years ago

Erdogan's reelection causes Turkish lira to plummet.

Turkey's lira hit a near record low against the dollar as President Recep Tayyip Erdogan secured his victory in the presidential election. The currency is expected to reach a new record low of 23 against the dollar by the end of the second quarter, according to Wells Fargo's Emerging Markets Economist and FX Strategist Brendan McKenna. Turkey's monetary policy, which prioritises growth and export competition over taming inflation, is expected to remain in place. The pressure on the lira is heavy due to limited FX reserves and negative real interest rates.

via CNBC|
#business#currency#erdogan
finance2 years ago

Turkey's Election Results: A Step Towards Autocracy?

Turkish assets fell again as President Erdogan's strong showing in the recent election raised investor expectations that he could extend his rule and unorthodox economic policies into a third decade. Banking stocks and sovereign dollar bonds slid for a second day, and the cost of insuring exposure to Turkish debt rose further. The lira set yet another record closing low, and longer-dated, dollar-denominated government bonds had the biggest falls in fixed-income markets. Credit ratings agency Fitch said the political and economic uncertainty would continue at least until after the runoff, and that its focus regarding Turkey's "B"/Negative sovereign rating after the election would be whether the policy mix "becomes more credible and consistent."

via Reuters|
#banking-stocks#erdogan#finance
finance2 years ago

Post-election trade causes Turkish lira to hit two-month low.

Turkey's lira weakened to a two-month low as financial markets opened after the country's presidential and parliamentary election, with the presidential race appearing headed for a runoff. The currency is on track for its worst session since early November, and analysts expect it to face sharp adjustments in the wake of the elections following years of economic imbalances and unorthodox monetary policy.

via Reuters|
#currency#economy#election