Turkish Crisis pushes Lira at record low
by Ralph Kratzer
This was particularly evident on the value of the Turkish lira, which slipped to a record low in trade with the U.S. Dollar and the EURO on Friday because of the corruption scandal and the ongoing government crisis.
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FOREIGN INVESTORS TO SAY GOODBYE!
In addition to the currency, Turkish government bonds also fell and the stock market in the country was under massive pressure after foreign investors had partially opted from the market.
However, the current government crisis also caused turbulences in the stock market in Istanbul. At the close of the week, the descent went further on the Turkish stock market.
The government in Turkey has been shaken by a corruption scandal for days and is plunged into one of its most serious crises to date. Prime Minister Recep Tayyip Erdogan saw himself at last forced to a radical transformation of his cabinet. Erdogan joined a total of ten of his 26 Ministers.
“The most recent messages undermine the facade of the economic competence of the government” said U.S. investment strategist Michael Shaoul of Market Field Asset Management.
Source: Reuters