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The Turkish Lira is Sinking so Fast it Risks ‘Smashing Into the Ground’

Posted August 10, 2018

Under Economic Issues, International Trade Issues

(Michael Selby-Green – Business Insider)

The lira fell 7% against the dollar to 5.9655 on Friday morning after hitting an all-time low earlier in the session. It has fallen by over 35% this year. The fall has come as Turkish President Recep Tayyip Erdogan has moved to take greater control of monetary policy.

The recent plunge comes after a Turkish delegation in Washington failed to stop the US from imposing sanctions against two senior ministers. The lack of central-bank action to support the currency is also spooking investors.

The lira “is falling so fast that a parachute is the first thing that comes to mind to prevent the lira smashing into the ground,” Bart Hordijk, a market analyst at Monex Europe, said in an email. Click here to read more.