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The Turkish pound fell today to a record low against the dollar amid growing international risk aversion. With its exchange rate at 7.4920 pounds to the dollar, its losses against the US currency reach almost 21% this year and are among the largest in the world. At 10:45 (Greek time), the exchange rate was 7.4870 pounds to the dollar.
With the Turkish currency depreciating in six of the last seven sessions, investors are still looking for clues as to whether the country’s central bank has indirectly stopped tightening its policy. The central bank made credit difficult after the pound was sold in late July. Average financing costs have increased and then stabilized around 10.15% in recent days. The central bank’s key interest rate is 8.25%.
Turkish Finance Minister Berat Albayrak said today that Turkey could capitalize on the impact of the global coronavirus crisis by putting the competitive pound at the center of a new strategy for a more export-oriented economy. Responding to questions from Bloomberg, Albayrak said all precursors indicate that the economic recovery is gaining momentum in the third quarter and that Ankara expects the recovery in the second half of the year to be “V-shaped.” “I think our growth rate will be significantly above 5% in 2021, if there is not a big new increase,” he said.
Source: ΑΠΕ-ΜΠΕ
