Lira’s fall imperils Erdogan’s grand designs in Turkey
Purge and terrorism rattle investors and leave business paralysed by uncertainty
RecepTayyip Erdogan's government has blamed currency speculators and rating agencies for the fall in the lira © FT montage; Dreamstime; Getty Images
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After surviving a coup attempt last year, Turkish president Recep Tayyip Erdogan had a plan: hold the economy together while overhauling the constitution and then parlay the promised political stability into a welcome mat for investors. But then the lira went into meltdown.
After falling 12 per cent in the two trading weeks of 2017, the currency, more than anything else, has exposed Turkey’s greatest economic weaknesses — an addiction to imports and a reliance on foreign money at time of huge uncertainty.
The lira plummeted by 4 per cent on Wednesday, hitting a record low and highlighting how a government crackdown, Mr Erdogan’s push for a new constitution to grant him an executive presidency and a wave of terrorist attacks have combined to rattle investors at home and abroad.
More: https://www.ft.com/content/107ed46c-d8ba-11e6-944b-e7eb37a6aa8e
Purge and terrorism rattle investors and leave business paralysed by uncertainty
RecepTayyip Erdogan's government has blamed currency speculators and rating agencies for the fall in the lira © FT montage; Dreamstime; Getty Images
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our T&Cs and Copyright Policy for more detail.
After surviving a coup attempt last year, Turkish president Recep Tayyip Erdogan had a plan: hold the economy together while overhauling the constitution and then parlay the promised political stability into a welcome mat for investors. But then the lira went into meltdown.
After falling 12 per cent in the two trading weeks of 2017, the currency, more than anything else, has exposed Turkey’s greatest economic weaknesses — an addiction to imports and a reliance on foreign money at time of huge uncertainty.
The lira plummeted by 4 per cent on Wednesday, hitting a record low and highlighting how a government crackdown, Mr Erdogan’s push for a new constitution to grant him an executive presidency and a wave of terrorist attacks have combined to rattle investors at home and abroad.
More: https://www.ft.com/content/107ed46c-d8ba-11e6-944b-e7eb37a6aa8e
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