Money Turkish Lira Tumbles as Investors Panic

18:01  10 august  2018
18:01  10 august  2018 Source:   msn.com

Turkish Lira Jumps as Regulator Curbs Bank Swap Transactions

  Turkish Lira Jumps as Regulator Curbs Bank Swap Transactions The Turkish currency rallied after the nation’s banking regulator halved the limit on lenders’s swap transactions, a move that is likely to deter short-selling in the currency.The Banking Regulation and Supervision Agency, or BDDK as it is known in Turkey, cut the limit on lenders’ swap and swap-like transactions to 25 percent of shareholder equity, from 50 percent. That follows a series of steps by Turkish authorities to stem a slide in the currency to a record low on Monday.

Turkey Central Bank Hikes Top Rate to Halt Lira Slump - Продолжительность: 2:03 Bloomberg TV Markets and Finance 125 просмотров. Turkish lira hits record low - Продолжительность: 2:00 World News 37 просмотров.

A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey Emerging market securities were mostly weaker as the lira and ruble tumbled , but analysts didn’t see the “The reason I don’t expect EM to start rolling over is investor concerns from a few months ago

Watch: 'Turkey contagion could spread into Europe'

Turkey edged closer yet to a full-blown financial meltdown.

Ahead of a much-anticipated public address by President Recep Tayyip Erdogan, the lira plunged more than 11 percent to a fresh record, headed for its worst week since 2001. Speaking outside a mosque earlier today, Erdogan told followers “Don’t forget this: if they have got dollars, we have got our people, our right, our Allah,” according to state media.

Turkish lira plunges further as Trump threatens tariff action

  Turkish lira plunges further as Trump threatens tariff action <p>Erdogan vows to fight back against ‘economic war’ as government prepares plan</p>The Turkish lira tumbled 12 per cent against the dollar as President Recep Tayyip Erdogan vowed to fight what he described as an “economic war” and Donald Trump said he would step up action against the country.

As Erdogan speaks later in the day, investors will be looking for any sign that he is willing to ease tensions with the U.S. sparked by the detention of an The lira tumbled as much as 11.2 percent to a fresh record of 6.3005 per dollar, while the 10-year bond yield jumped 93 basis points to 20.67 percent.

A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey Emerging market securities were mostly weaker as the lira and ruble tumbled , but analysts didn’t see the “The reason I don’t expect EM to start rolling over is investor concerns from a few months ago

Read More: Erdogan defiant over market rout

Government bonds slumped, sending benchmark yields to an all-time high amid falling investor confidence in the authorities’ ability to stem the market rout.

Related: Could Turkey's crisis spread to Europe?

a screenshot of a video game: Lira plunges more than 11% to fresh record low versus dollar © Bloomberg Lira plunges more than 11% to fresh record low versus dollar

As Erdogan speaks today, investors will be looking for any sign that he is willing to ease tensions with the U.S. sparked by the detention of an American pastor. The worry is that Turkey will face further sanctions if he is not released. The market will also watch whether the president will play down his long-held distaste for higher borrowing costs that many investors say is standing in the way of policy efforts to anchor the nation’s assets.

Turkey accuses US of 'stab in the back' as currency tanks

  Turkey accuses US of 'stab in the back' as currency tanks Turkey's central bank says it is ready to take "all necessary measures" to ensure financial stability following the collapse in value of the lira. As the country's bank moved to calm markets rattled by the decline of the Turkish currency, its defiant leader attacked the United States over its use of sanctions.President Recep Tayyip Erdogan accused the US of seeking to "stab" Ankara "in the back" - deepening the row between the two countries.In an address in the Turkish capital Ankara, Mr Erdogan insisted Turkey's economy was strong and said the currency would soon settle "at the most reasonable level".

A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey Emerging market securities were mostly weaker as the lira and ruble tumbled , but analysts didn’t see the “The reason I don’t expect EM to start rolling over is investor concerns from a few months ago

He called on Turks to support their struggling currency. "If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira . " Investors have been looking at the unfolding currency crisis in Turkey as a local difficulty, however the accelerating speed of the declines appears

  Turkish Lira Tumbles as Investors Panic © AP “Seems like a complete crash, so they need to act now,” said Morten Lund, a strategist at Nordea Bank AB in Copenhagen. “The lira will keep falling if they don’t hike rates today.”

Lira’s Drop Seen Extending as Contagion Risk Grows, Analysts Say

  Turkish Lira Tumbles as Investors Panic © Bloomberg The turmoil threatens to scare away the foreign capital that Turkey depends on to finance its large external deficit, and hampers companies’ ability to repay foreign-currency loans. The government cut its 2018 growth target Thursday to less than 4 percent, from 5.5 percent, a sign that it is willing to accept a more moderate pace of expansion in an effort to rebalance the economy.

Treasury and Finance Minister Berat Albayrak is due to hold a press conference this afternoon.

Turkey to set out ‘new economic model’ as lira tumbles

  Turkey to set out ‘new economic model’ as lira tumbles <p>Currency drops to record low after Washington meeting fails to show progress on US rift</p>After a Turkish delegation to Washington failed to show progress towards the lifting of US sanctions, the lira fell to a new low of TL5.4477 against the dollar, representing a 3.1 per cent decline from its overnight position.

The Turkish Lira accelerated its recent demise today - breaking below two critical thresholds - as President Erdogan rebuffed investor calls for higher rates to tamp down excess growth (inflation), commenting that they "are speaking out of jealousy."

Turkey 's central bank had to take emergency measures to raise the benchmark lending rate after the lira fell more than five percent on Wednesday, reflecting growing investor alarm over President Erdogan's monetary policy.

The revisions are unlikely to be enough “to lead to a recovery in markets,” said Erkin Isik, a strategist at Turk Ekonomi Bankasi AS. “If the currency remains at current levels, headline inflation is likely to approach 18 percent year-over-year by September. As a result, current policy rate at 17.75 percent is not tight enough.”

The lira tumbled as much as 11.2 percent to a fresh record of 6.3005 per dollar, while the 10-year bond yield jumped 93 basis points to 20.67 percent.

The market rout on Friday was compounded by a Financial Times report that said the European Central Bank has grown concerned about the exposure of some euro-zone banks to Turkish assets following the lira’s plunge.

“The key to any hope of Turkish stability is the ability for banks to roll over syndicated loans -- so far, that’s been absolutely fine,” said Paul McNamara, a money-manager at GAM UK in London. “I think the FT thing about the ECB being worried about Turkey exposures is a huge new factor.”


Turkish lira at record low as Trump doubles tariffs .
Turkey's currency slumped to a new record low as Donald Trump compounded the country's economic crisis by doubling steel and aluminium tariffs. The US president revealed the action on Friday as he noted how the Turkish lira "slides rapidly downward" against the "very strong" US dollar.Amid an escalating feud with Ankara, Mr Trump added on Twitter: "Our relations with Turkey are not good at this time!"The day saw the lira plunge as much as 18% at one point, the biggest one-day drop since Turkey's 2001 financial crisis.Now at a new record low, Turkey's currency has lost more than 40% this year.

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