Turkey goes from bad to worse

Share

• Copy link
• Facebook
• X
• Linkedin
• Whatsapp
• Pinterest

Share this article

Join the conversation

Follow us

Add us as a preferred source on Google

Newsletter

Get the MoneyWeek Newsletter

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors

---

By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

You are now subscribed

Your newsletter sign-up was successful

---

Want to add more newsletters?

Twice daily

MoneyWeek

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Signup +

Four times a week

Look After My Bills

Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!

Signup +

---

An account already exists for this email address, please log in.

Subscribe to our newsletter

Turkey "appears closer to a full-blown currency crisis than at any point since the ruling AK party took power in 2002", says the Financial Times. The lira keeps plumbing new lows against the US dollar; it has lost 10% since the start of 2017.

The problem is largely self-inflicted. Turkey's increasingly authoritarian president, Recep Tayyip Erdogan, "threatens the basic functioning of Turkey's institutions". His crackdown following a coup attempt in July has unsettled investors and local businesses. Terrorist attacks have undermined crucial tourism receipts and the sliding currency is increasing the burden of local firms' foreign debts.

In these circumstances the central bank would normally raise interest rates to stabilise the currency, but because Erdogan has constantly bullied it to keep monetary policy loose in recent years, it may not be able to act. Erdogan prefers to blame such problems on a "nefarious conspiracy of international financiers".

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up