Erdogan says attempts to exert economic pressure on Turkey futile

Erdogan says attempts to exert economic pressure on Turkey futile

Turkey's currency nosedives on economic concerns, US dispute

The Turkish lira has fallen to a new record-low this morning, as much as 12 per cent in one day, amid the souring of diplomatic relations with the United States and a deepening monetary policy crisis.

The Financial Times added to concerns with a report that the European Central Bank was anxious about possible losses at eurozone banks operating in Turkey.

"We will not lose the economic war", Erdoğan said, calling on Turks to support their struggling currency.

As investors piled into "safe" bonds, German yields hit three-week lows and yields on USA 10-year Treasuries fell to 2.8913 percent.

Berat Albayrak, the Treasury minister and Mr Erdogan's son-in-law, is due to announce a "new economic model" for Turkey...

At Least Four Killed in Canada Shooting
At least four people were killed in an early morning shooting in Fredericton, Canada , on Friday, Aug. 10, 2018. About five minutes later, he could hear similar noises near his home.

TRY now comes under pressure once again after the press conference by President Erdogan is failing to ignite some interest around the currency, all amidst a "radio silence" from the Turkish central bank (CBRT).

Turkish economist Korkut Boratav sees the need for urgent action: "The economy is fragile".

"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. Though this is four times larger than Greece, it is still "less than half the size of the Italian economy, despite Turkey's larger population of around 80 million versus around 60 million for Italy", according to the analysis.

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. Even in the worst case scenario, "bank supervisors in the eurozone would have sufficient tools at their disposal to contain the damage", making a credit crunch in any part of the eurozone highly unlikely, concludes the upbeat analysis.

"Many of these European banks have their own non-performing loans and liquidity issues to deal with themselves". "The Europeans should have known that they should not lend to distressed banks", criticizes Boratav.

Latest News