Categories: Market Overview

Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback bought 5.569 lira at around 8:45 a.m. London time on Thursday morning, from a level of around 5.33 lira at the close of trade Wednesday. Reuters data showed it fell by as much as 5 percent during morning trade.

The fall comes on the back of dismal central bank figures revealing a dramatic decrease in international reserves. The Turkish central bank’s net international reserves for the week ending March 22 sat at 142 billion lira ($24.7 billion), showing a near $10 billion drop in the first three weeks of March. These are “approaching mission critical numbers,” commented Timothy Ash, a Turkey expert and senior emerging markets strategist at Bluebay Asset Management, in a research note. “IMF (International Monetary Fund) may well be required post election.”

The Turkish currency has undergone a dramatic 24 hours as the government instructed national banks to withhold lira liquidity from the offshore swap market to prevent a steep fall in the lira. The move aims to prevent short selling on the currency ahead of local elections on Sunday that are widely seen as a referendum on Turkish President Recep Tayyip Erdogan. Country analysts and national polls expect losses for Erdogan’s AK Party. The currency plunged by around 30 percent in 2018, in what was a turbulent year for the country.

Turkish lira slides 5 percent ahead of key elections this weekend, CNBC, Mar 28
The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

3 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

3 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

EURGBP Wave Analysis 19 December 2024

- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…

3 days ago

EURJPY Wave Analysis 19 December 2024

- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…

3 days ago

This website uses cookies