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The lira took a hit on Thursday due to concerns over potential US sanctions, conflict in the Caucasus region and turmoil in relations with the European Union.
This decline is the latest in more than two years of continuous decline in the value of the Turkish currency, which has recently been exacerbated by Ankara’s involvement in a large number of geopolitical conflicts, including Libya, Nagorno Karabakh, disputes over resources. of the eastern Mediterranean and its purchase of the Russian defense system. From the S-400, according to a CNBC report.
On Wednesday, Washington issued a stern reprimand in response to a report that Turkey may intend to conduct a full test of the Russian S-400 anti-aircraft defense system it purchased despite vocal opposition from the United States and the rest of the NATO allies from Ankara.
The Turkish Defense Ministry had no comment on the report, but the US State Department’s condemnation was swift.
“We are … deeply concerned by reports that Turkey is continuing its efforts to test the Russian S-4 anti-aircraft defense system,” the Foreign Ministry said.
“We continue to emphasize at the highest levels that the Russian S-4 air defense system agreement remains a major obstacle in bilateral and NATO relations, as well as the risk of possible sanctions,” he added.
In this context, a Republican and a Democrat in the United States Senate called on the administration of President Donald Trump on Wednesday to impose sanctions on Turkey.
The Turkish currency has lost 25 percent of its value this year, mainly due to concerns about the dissipation of the central bank’s foreign exchange reserves and costly interventions in the foreign exchange market. But geopolitical concerns are now a major factor.
