The Turkish lira fell against the US dollar after previously seeing some gains earlier during the week. This comes at a time when the Turkish Finance Minister made a few statements that left investors waiting for further indications regarding the plans to support the two loans. This is part of the roadmap to rebalance the country\u2019s economy.<\/p>\n
The lira surged about 2% after Turkish Finance Minister Berat Albayrak announced lower growth and spending targets, but the gains were erased as he omitted further details on the key issue, which investors were looking forward to.<\/p>\n
Speculations have been building up that government authorities will announce a plan to help banks overcome the debt problem, amid concerns and economic tensions that have contributed to a 40 percent fall in the value of the Turkish currency this year.<\/p>\n
According to economic analysts, the most important obstacle for the government is the challenges faced by banks, and the authorities must be volatile to all innovative solutions to solve these problems in order to help banks clean up their budget.<\/p>\n
While the Turkish lira stabilized last week after the central bank raised interest rates by about 625 points, many investors began to look for signs about the authorities’ move to further measures to stimulate the economy.<\/p>\n
However, the pound fell by 1% against the US dollar during the trading session on Thursday, trading at 6.3092 pounds per dollar, which showed that the the authorities are committed to tighten monetary policy and financial stability and do not plan any financial stimulus programs to support the economy.<\/p>\n
Revised forecasts projected economic growth slowing to 3.8% in 2018, and 2.3% in 2019. The figures, especially the ones for next year, remain more optimistic than the expectations of the Organization for Economic Cooperation and Development (OECD), which sees Turkey’s economic expansion at only 0.5 percent next year.<\/p>\n
It should be noted that the Turkish economy expanded by 7.3% in the first quarter and 5.3% in the second quarter of the current year.<\/p>\n
Plans to restructure the Development Bank of Turkey and the Real Estate Bank of Turkey have also raised concerns about the government’s commitment to some expansionary economic policies. Everything is now about credit contraction, debt repayment, and restructuring, which will undoubtedly be painful, and take a lot of time.<\/p>\n","protected":false},"excerpt":{"rendered":"
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