Tuesday 14, August 2018 by Kudakwashe

Turkish lira recovers on central bank pledge

 

The lira jumped more than six per cent to 6.46 points per dollar.

  

The Turkish lira gained from a record low of 7.24 against the greenback following the central bank’s pledge to provide liquidity in response to a meltdown which has unsettled global emerging markets, reported Reuters.

The lira had weakened by 45 per cent against the dollar this year, fuelled by President Erdogan's calls for lower interest rates and the rift with the US.

The contagion effects of the weakening lira rocked global markets, with its drop of as much as 18 per cent last week hitting US, European as well as Chinese stocks as investors became worried about banks’ exposure to Turkey.

 

Features & Analyses

Economics Adapting to a new era

  Abdullah Al-Fozan, Chairman of KPMG MESA and KPMG Saudi Arabia, provides an exclusive commentary on the Kingdom’s business… read more