Turkish Lira Falls to Record

BN-GR641_turkli_P_20150129080228Turkey’s currency weakened as much as 1 percent, declining 5.1 percent in two weeks, while benchmark two-year note yields climbed to the highest level since Dec. 18 and the Borsa Istanbul 100 Index slipped 0.5 percent. The central bank will be “held accountable” if it can’t manage foreign-exchange policy, state-run Anadolu news agency cited Erdogan as saying on Sunday.

The president’s comments come as a rift deepens between central bank Governor Erdem Basci and the government over interest rate policy with the economy forecast to grow at the slowest pace since 2012. Erdogan has repeatedly called for lower borrowing costs even after policy makers cut the benchmark rate 50 basis points to 7.75 percent last month to support growth.

“The movement is mostly due to the interest-rate debate that’s been going on,” Pinar Uslu, a strategist at ING Bank AS in Istanbul, said by e-mail. “The market could be trying to determine when or if the central bank will draw a line” by tightening liquidity or commenting on foreign-exchange volatility, she said.

The lira slid to 2.4080 against the dollar at 6:59 p.m. in Istanbul, making it the worst performer after Brazil in the past two weeks among 24 emerging markets tracked by Bloomberg. The two-year yield has jumped 149 basis points, or 1.49 percentage points, to 8.36 percent in the same period.
Basci Defends

“The strengthening or weakening of the dollar is not something for me to evaluate,” Anadolu cited Erdogan as saying at Istanbul Ataturk Airport before he departed on a visit to Bogota, Colombia. “If the central bank can’t manage this, then it will be held accountable for it.”

At a Group of 20 conference in Istanbul, Basci defended orthodox economic theory, saying history shows that monetary tightening is the solution to inflation. Erdogan has argued that cutting borrowing costs will bring the inflation rate down.

“The best contribution to growth from a central bank would be to maintain price stability,” Basci said.

Inflation slowed to 7.24 percent in January, compared with 8.17 percent a month earlier, the statistics office reported Feb. 3. Annual inflation is expected to fall to 6.2 percent this year, according to the median of 20 economist estimates compiled by Bloomberg.

Basci, who said last month he would hold an emergency meeting should inflation fall more than 1 percentage point, canceled the meeting after last week’s data. The central bank has lowered its benchmark one-week repurchase rate by 2.25 percentage points since more than doubling it to 10 percent in January last year to defend the lira. It is next scheduled to meet on Feb. 24.

“Everyone expects the central bank to cut rates at the next meeting so that’s the reason behind the sell-off in the lira,” Vedat Mizrahi, head of research at Unlu Securities in Istanbul, said by e-mail. This “resulted in profit taking and significant outflows from bonds which then trickled down to equities,” he said.
(Bloomberg)

24 Comments

  • Elda Odin Reply

    24 January 2021 at 22:54

    Hello There. I found your blog using msn. This is a really well written article. I will make sure to bookmark it and return to read more of your useful info. Thanks for the post. I will definitely return.

  • cara daftar akun togel Reply

    25 January 2021 at 21:31

    Nice post. I learn something new and challenging on sites I stumbleupon on a daily basis. It will always be helpful to read pormosi judi kartu poker articles from other writers and use a little something from their websites.

  • Barton Kuhlmey Reply

    26 January 2021 at 12:46

    HI

  • Mitzi Betzner Reply

    27 January 2021 at 04:57

    Sweet blog! I found it while searching on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thanks

  • Casey Permenter Reply

    28 January 2021 at 15:04

    It’s really a nice and helpful piece of information. I’m glad that you shared this useful information with us. Please keep us informed like this. Thanks for sharing.

  • Nutten Treffen Reply

    30 January 2021 at 07:27

    Good site! I really love how it is simple on my eyes and the data are well written. I am wondering how I could be notified when a new post has been made. I have subscribed to your RSS feed which must do the trick! Have a nice day!

  • Gout Is Caused By Reply

    02 February 2021 at 13:06

    Thank you for another informative web site. Where else could I get that kind of info written in such a perfect way? I’ve a project that I’m just now working on, and I have been on the look out for such information.

  • Randal Corigliano Reply

    04 February 2021 at 01:41

    Your place is valueble for me. Thanks!…

  • game poker yang populer Reply

    04 February 2021 at 22:54

    Spot on with this write-up, I really believe that this site needs much more attention. game slot gampang menang I’ll probably be back again to see more, thanks for the info!

  • read this Reply

    05 February 2021 at 11:33

    This can be an inspiration to many people. Very good job

  • Gustavo Zanin Reply

    05 February 2021 at 15:41

    Thanks for the good writeup. It in truth used to be a leisure account it. Glance advanced to far added agreeable from you! However, how could we keep in touch?

  • visit me Reply

    06 February 2021 at 10:18

    Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! However, how could we communicate?

  • Tonic Bariatric Plate Reply

    10 February 2021 at 20:10

    Amazing blog! Do you have any recommendations for aspiring writers? I’m hoping to start my own website soon but I’m a little lost on everything. Would you recommend starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m totally confused .. Any recommendations? Bless you!

  • Kai Bellow Reply

    11 February 2021 at 15:22

    F*ckin’ remarkable things here. I am very glad to look your article. Thanks so much and i am looking forward to contact you. Will you kindly drop me a e-mail?

  • game casino penghasil uang Reply

    11 February 2021 at 16:53

    Spot on with this write-up, I really feel this site needs a great deal more attention. sicbo uang asli I’ll probably be returning to see more, thanks for the advice!

  • Ardelia Ilic Reply

    12 February 2021 at 08:48

    What i don’t understood is in truth how you’re not actually a lot more well-preferred than you might be now. You are very intelligent. You already know therefore significantly in the case of this topic, produced me individually consider it from a lot of various angles. Its like men and women don’t seem to be fascinated unless it’s something to accomplish with Lady gaga! Your individual stuffs great. All the time maintain it up!

  • Dortha Boorom Reply

    16 February 2021 at 01:50

    Hello! This post could not be written any better! Reading this post reminds me of my previous room mate! He always kept chatting about this. I will forward this write-up to him. Fairly certain he will have a good read. Thank you for sharing!

  • syt intertrade sdn bhd Reply

    18 February 2021 at 09:18

    You might have made some great points there. I checked on the web to find out more about the issue and found
    the majority of people may go together with your thoughts about this site.

    Feel free to surf to my homepage syt intertrade sdn bhd

  • perincian objek Reply

    18 February 2021 at 16:10

    May I just say what a relief to find someone that really knows tipe permainan kartu This site is one thing that’s needed on the web, someone with a bit of originality!

  • Birdie Sandi Reply

    22 February 2021 at 04:32

    Howdy would you mind letting me know which web host you’re working with? I’ve loaded your blog in 3 different browsers and I must say this blog loads a lot quicker then most. Can you suggest a good web hosting provider at a honest price? Thanks a lot, I appreciate it!

  • Ronald Benkert Reply

    23 February 2021 at 04:50

    I’d should test with you here. Which isn’t one thing I normally do! I get pleasure from reading a post that will make folks think. Also, thanks for permitting me to remark!

  • secara detail Reply

    24 February 2021 at 21:31

    May I simply just say what a relief to find somebody who truly knows jenis permainan judi togel This website is something that is required on the internet, someone with a little originality!

  • Avery Rosewall Reply

    25 February 2021 at 00:06

    Hola! I’ve been reading your weblog for a while now and finally got the bravery to go ahead and give you a shout out from Kingwood Tx! Just wanted to say keep up the excellent job!

  • Kostenloser Gay Chat Reply

    28 February 2021 at 02:45

    Ich wei� nicht einmal, wie ich hier gelandet bin, aber ich dachte, dieser Beitrag w�re gut. Ich wei� nicht, wer Sie sind, aber Sie werden bestimmt ein ber�hmter Blogger, wenn Sie es nicht schon sind 😉 Prost!

Leave a Comment