- The Central Bank of the Republic of Turkey (TCMB) has outlined a range of measures to bolster liquidity and support the financial system.
- The lira plunged as much as 10 per cent during the Asian markets trading session after a fall of 25 per cent against the US dollar last week — moves that rattled markets around the world.
- Analysts and eurozone financial regulators are concerned about the potential for the weakening lira to cause problems for banks in Turkey, as well as for major lenders in Spain and France.
- In a statement released today, the TCMB said it would take “all necessary measures” to maintain financial stability.
- The Turkish lira climbed off its session lows in Asia but remains volatile.
SYDNEY, AUSTRALIA — The Central Bank of the Republic of Turkey (TCMB) has pledged to maintain stability in the financial system, which is teetering on the brink of a crisis amid a rapid depreciation in the lira.
The Turkish currency plunged 25% against the US dollar last week, with most of that depreciation happening on Friday amid escalating tensions with the Trump administration and market uncertainty about the ability of President Recep Tayyip Erdogan to manage the mounting problems in the Turkish economy.See the rest of the story at Business Insider
- Fallout from the Turkish lira’s meltdown is starting to spread to markets around the world
- Your opinion matters — Join BI Insiders program
- Turkey’s currency panic reveals a major downside of Trump’s ‘America First’ policy — and offers an early warning to the Fed