The Turkish lira is depreciating against a “gloomy” political and economic outlook

The Turkish lira fell to a new low against the dollar on Friday, bringing its losses to 3 percent this month amid fears that President Recep Tayyip Erdogan’s policies have driven foreign investors.

Erdogan fired three high-ranking central bank officersSince March, including the governor, deepening fears that policymakers will not be able to withstand the political pressure of lowering the cost of compromise by curbing double-digit inflation.

The lira traded at 8.6145 against the dollar on Friday, down more than 13 percent since the beginning of the year. It indicates the lowest level that the currency has reached during the hours when the lira is actively selling.

“Everything seems bleak, both the macroeconomic and the political situation is becoming negative,” said Enver Erkan, an economist at Tera Securities in Istanbul. “The central bank is not able to signal actively, there are disagreements with other emerging market currencies over Turkey’s unique dynamics.”

As a sign of investor acidification forecasts, the California Senate this week voted to allow the Public Employees’ Retirement System ից two of the world’s largest pension investors to allow school districts և cities choose yout investment machines owned or issued by Turkey.

The pre-emptive strike was intended to punish the government for refusing to recognize him before he was killed or deported. In the last days of the Ottoman Empire, 1.5 million Armenians committed genocidesaid California Sen. Anthony Portantino, one of the co-sponsors of the bill. Turkey claims that Muslims, Christians, were killed during the chaos of World War I and the subsequent collapse of the Ottoman Empire.

S&P Global Ratings is due to announce its latest rating decision on Turkey on Friday. Since August 2018, the country has maintained its rating at B +, below the level of investment. All three rating agencies – S&P, Fitch և Moody’s – classify Turkish debt as worthless.

“It was the culmination of the recent balance of payments crisis, [and] “It’s hard not to argue that things have gotten worse since then,” said Timothy Ash, chief strategist at BlueBay Asset Management.

Erdogan, who has a history of central bank intervention, abruptly fired the central bank governor in March after he sharply raised interest rates to curb inflation, which now stands above 17 percent. In: The president appointed the newspaper’s columnist Sahap Kavcioglu who shares his non-orthodox belief that high interest rates drive inflation is at the helm of the bank.

Erdogan replaced this week After the dismissal of the second deputy governor of the Central Bank Immediately after Kavcioglu’s appointment. The central bank on Thursday also replaced several directors, including heads of banking, research and statistics departments, according to Bloomberg.

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