Turkish Lira Rebounds as Finance Minster Vows to Support Currency

The Turkish lira recovered some of its losses on Tuesday, with the country’s finance minister pledging to take steps to support the under-pressure currency.

There was some respite for the lira after days of heavy losses. The currency rose 5% to about 6.5 to the dollar on Tuesday afternoon, after slumping 20% in the past four working days. The country’s central bank stepped in on Monday by pledging to provide liquidity to its banking sector.

Berat Albayrak, Turkey’s treasury and finance minister, and President Recep Tayyip Erdoğan’s son-in-law, provided further support with defiant comments on the national currency.

Albayrak told members of the ruling AK Party: “We will protect the lira, we will march with the lira and the lira will strengthen greatly in the coming period.”

He also attacked the US currency, saying it had “lost all credibility”, despite the dollar trading at one-year highs against most major currencies.

“In times when the dollar has been turned into a tool for political punishment, we will continue to strongly take steps to protect the lira in international trade,” he added.

Turkey’s stock market also recovered, closing up about 0.75%, compared with a loss of nearly 4% on Monday.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza