a minute agoThe dramatic decline of Turkish lira “godet” and many other countries
Periskopi(8 years ago)
(8 years ago)Turkey's dramatic economic downturn is spreading the crisis to global markets as well. The lira landed at the bottom of 7.19 against the dollar on Sunday, down from 6.4 at the end of last week, when the US imposed doubles in tariffs for steel and aluminum. On Monday morning, Turkish coins were shown with only 6.84, more [...]
On Monday morning, Turkish coins were shown by just 6.84, more than 25 percent lower than seven days ago, and about 45 percent since the beginning of the year.
The country's emergency situation contributed to the punishment of Asian shares overnight. Hang Seng's Hong Kong Index lost 1.5 percent, and Tokyo's Nikkei dropped 2 percent.
“Investors remain afraid Monday, from the rapid decline of Turkey's lira, and concerns that a financial crisis in the country will wave across the rest of Europe, keeping markets on red”, said Connor Campbell, financial analyst at Spreadex.
Loss of confidence in the lira also spread to South Africa, where the local currency fell by 7 percent against the dollar on Monday.
Indian Rupi drowned in a record low against the dollar 69.8.
But the coins they won were dollars and Swiss francs, followed by oracles.tv.
The European banks index was 1.2 percent, reflecting on the growing concerns of exposing the continent's lenders to defaulted risks to Turkish loans.
Analysts said other emerging market economies were in a position similar to Turkey.
The current root cause is divided by many nations, from which Argentina is the most obvious example”, said Edward Park of the investment manager Brooks Macdonald.
Turkey has tripled US dollar obligations in the last 10 years, profiting from free money to refinance itself. At the beginning of the year, however, the US federal reserve began to enter the quantitative tightening, essentially attracting its liquidity, at the same time as raising rates, which means it is much more expensive to finance American dollars, which is a problem for developing markets”.
“Combets with higher non-bank debt obligations as a percent of GDP are: Chile, Mexico, Turkey, Indonesia, Argentina, Russia, Malaysia, South Africa, Brazil and South Korea”, said Peter Rosenstreeich of Swissquote Bank.
Turkey's President, Recep Tayip Erdogan, blamed the weekend economic crisis on <x0-communicabled secret” by Donald Trump.
