What if Turkey squeezed the London lira market to death?

  • 📰 Reuters
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

Turkey's authorities have shown over the past month they are capable of squ...

LONDON - Turkey’s authorities have shown over the past month they are capable of squeezing the life out of the $35 billion -a-day London lira market - but the cost of killing it off completely would be high for country itself.

Nevertheless, Erdogan frequently blames foreign “speculators” for sending the lira sprawling. That in turn squeezes payments and the refinancing of Turkish companies’ hard currency debts, sends household savings scurrying to dollars, ramps up inflation and interest rates and slams the brakes on the economy.

“That seems to be the message, considering they squeezed the international positions so much,” he said, adding it was relentless volatility that irked Ankara. Simply by shutting off its funding auctions for a while and maybe a bit of behind-the-scenes leaning on the local lenders, the central bank could spike the swap rates and briefly seize the market.

Aberdeen Standard Investments’ Kieran Curtis says that this hoarding means Turkey’s banks effectively have a surplus of dollars on their books but a shortage of lira.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Investors have not confidence in the Turkish economy meanwhile, the greatest company in the world is Saudi_Aramco which has gotten large amount of money to invest from Saudis and foreigners.

What is problem?

I need to ask ProfDemirtas 🤔

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines