Turkish lira sinks to record low against USD as presidential poll heads to runoff
ISTANBUL, May 16– The Turkish lira hit a record low of 19.70 against the U.S. dollar on Tuesday as the presidential election is heading to a runoff on May 28 after Sunday’s inconclusive vote. But since the pandemic, an important part of these losses are due to domestic political and economic developments, ” Murat Tufan, an analyst for the financial TV channel Ekoturk,…
ISTANBUL, May 16 (Xinhua) — The Turkish lira hit a record low of 19.70 against the U.S. dollar on Tuesday as the presidential election is heading to a runoff on May 28 after Sunday’s inconclusive vote.
In the open market, the exchange rate went as high as 22 liras per dollar on Monday before falling back to 20.25 on Tuesday.
“Turkish assets have been losing value these past five years. But since the pandemic, an important part of these losses are due to domestic political and economic developments,” Murat Tufan, an analyst for the financial TV channel Ekoturk, told Xinhua.
“The Central Bank’s efforts to control inflation by lowering interest rates did not pan out, and the dollar exchange has blown up,” he said.
Turkish people have long been suffering high living costs triggered by a soaring inflation rate, which hit a 24-year high of 85.5 percent in October of last year before falling back to 43.68 percent in April.
“This past year, we’ve been discussing what decision will come out of the ballot box … Market pricing shows there is demand for normalization, for a return to orthodox fiscal policy,” Tufan said, explaining the unusual discrepancy between the exchange rate at banks and in the open market.
Turkish President Recep Tayyip Erdogan has been employing unorthodox policies such lowering interest rates, claiming such policies will bring down inflation despite the objections of many financial experts.
“If there isn’t normalization in fiscal policy, if institutions aren’t allowed to operate independently, or market-friendly steps aren’t taken, then the Turkish lira will continue to lose value and reach 25-27 liras per dollar after the (runoff) election,” Tufan said.
The benchmark BIST-100 Index at the Istanbul Stock Exchange dropped 6.38 percent on Monday.
Türkiye’s election watchdog has announced that the presidential election will go to a runoff as no candidate secured more than 50 percent of vote in Sunday’s initial round. Enditem
ANA NEWS WIRE Disclaimer:
The African News Agency (ANA) is a news wire service and therefore subscribes to the highest standards of journalism as it relates to accuracy, fairness and impartiality.
ANA strives to provide accurate, well sourced and reliable information across Text, Images and Video. Where errors do appear, ANA will seek to correct these timeously and transparently.
The ANA platform also contains news and information from third party sources. ANA has sought to procure reliable content from trusted news sources but cannot be held responsible for the accuracy and opinions provided by such sources on the ANA platform or linked sites.
The content provided for on the ANA News Wire platform, both through the ANA news operation and via its third party sources, are for the sole use of authorised subscribers and partners. Unauthorised access to and usage of ANA content will be subject to legal steps. ANA reserves its rights in this regard.
ANA makes every effort to ensure that the website is up and running smoothly at all times, however ANA does not take responsibility for, and will not be held liable for times when the website is temporarily unavailable due to technical issues that are beyond our control.