The currency has lost about a quarter of its value against the dollar since the U.S. sanctioned two Turkish ministers.
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
The lira briefly trimmed losses after the central bank statement but weakened about 6.2 percent to 6.8279 to the dollar at 5:40 p.m. in Istanbul. The yield on two-year government bonds jumped 94 basis points to 25.74 percent, the highest level since the global financial crisis in 2008, while the benchmark stock index dropped 2 percent.As the cost of insuring Turkish debt against default over five years surged more than 100 basis points to 537 basis points, the Treasury announced it wouldn't sell 10-year fixed-coupon debt Tuesday as scheduled and will offer only floating-rates notes.Over the weekend, Erdogan lashed out at the U.S., threatening to find new alliances and new markets for the economy's vast financing needs.He also took higher interest rates off the table and said Turkey wouldn't accept an international bailout.Some investors have called for the benchmark rate of 17.75 percent to be raised by 1,000 basis points.
FOLLOW THIS ARTICLE