* Naci Agbal, who was sacked by Erdogan on Saturday, had served less than five months at the head of Turkey’s central bank.
* During that time he raised the country’s main interest rate by roughly 450 basis points to 19% — something that the vast majority of economists believe was necessary to tame Turkey’s high inflation and bring stability to the lira.
Turkey’s lira fell dramatically on Monday morning after President Recep Tayyip Erdogan fired the country’s central bank chief — the third to be fired in two years — sending shockwaves through the investor community.
The currency plunged more than 16% in early morning Asian trading, according to analysts, hitting 8.4 against the dollar compared to a close of 7.21 on Friday. It pared some losses to trade around 7.9 to the dollar by 11 a.m. local time, although the greenback was still up nearly 10% on the lira.
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Update #1: Turkish lira falls 15% after bank governor sacked (BBC)
Update #2: Turkey tries to control market plunge after bank chief sacked (DW)
WNU Editor: when your currency crashes by 16% in one day, you just know that bad times are coming.
4 comments:
In times past countries have retrenched, if the budget was in shambles, and given up a current war. See War of Spanish Succession. Some historians have said Hitler was forced to go to war. Yes, forced. His military re-armament was going to bankrupt Germany in a few years time. He had to give up military expansion or go broke. He chose to use the military. I think Erdogan will do the same within the next 2 years.
16%! Take that savers.
Time to take those last 20 nukes out as well me thinks!
Agreed.. it must be tempting for Erdogan to take them
As they removed 30 already in silence, i wonder how difficult it would be NOW to do it. .likely it wasn't easy back then and maybe that's why they only got out 30 but I'd still try and do it soon
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