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Turkish Lira strikes new target when women lose faith | Banking Issues

The central bank governor of the Turkish bank, Sahap Kavcioglu, has tried to reassure senior foreign investors that the concerns of a slowdown in money laundering were not justified.

The Turkish lira stabilized at a weak rate but on Thursday, worth $ 8.7 billion, after solid data in the United States chased for three months as investors lost confidence in the authorities’ ability to reverse the two-pronged rise.

The lira, which is new to the market this year, was at 8.705 at 17:19 GMT, the lowest price. One of his eagles rallied as the U.S. and US currencies jumped after pay more than expected in U.S. wages.

The price has fallen 17% since mid-March, when Turkish President Recep Tayyip Erdogan, already opposed high interest rates, removed hawkish and the head of the central bank.

The current governor of the bank, Sahap Kavcioglu, called on Wednesday to reassure foreign officials that concerns about a rapid reduction are not justified.

But several callers told Reuters news agency they did not believe it, especially Erdogan – after being seen by many to determine prices – said the day before the reduction of points should begin in the next two months.

The president has abruptly fired three bankers in two years, putting the country at risk of economic collapse, he said.

“I think Kavcioglu is on a tourist visa to [central bank] then what he said or did not say would not really matter, “said Erik Meyersson, a Stockholm economist at Handelsbanken, who was invited.

“If Erdogan says prices are going down in July or August, then it is likely to happen.”

People who listen to Kavcioglu and other bank officials on the call say they still expect to start cutting the money from 19% in the third quarter.

‘Please president’

Rising prices have risen more than 17% in recent months but have suddenly plummeted to 16.6% in May due to a reduction in coronavirus losses, according to a government report Thursday.

However, many analysts expect consumer prices to remain stable at the end of the year due to inflation and commodity prices, which raise the export price. The Lira recorded a record low of 8.88 to $ Wednesday.

Tourism costs, often misplaced to date, have also been hit hard by the coronavirus epidemic.

“All of this keeps us from building more in Turkey than other markets … which are just coming [EMs], ”Said Shamaila Khan, head of EM credit management at AllianceBernstein in New York.

“It’s difficult to know how much they help. Obviously, as long as they are trustworthy there is a policy that comes with interest which is not profitable,” he said.

The World Bank and other experts say the biggest risk to Turkey is the tightening of US Federal Reserve regulations, which could raise huge sums of money and draw funds from at-risk EMs.

Kavcioglu told investors that the inflation rate could fall sharply in September or October.

Nikolay Markov, an economist at Pictet Asset Management, said the song reassures him that prices will fall in mid-summer and that Kavcioglu understands he has to “please the president”.

“He seems ready to do whatever it takes to keep the election going at the lowest possible cost, and he knows the importance of it sometimes,” Markov said.

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