The fastest falling currency in the world is the Argentine peso, which has lost 30% since the beginning of the year. values. In second place is the Turkish lira. “Turkish Finance Minister Simsek needs good news - an agreement on Sweden’s membership in NATO at the July 11-12 summit or new money from the Persian Gulf,” the German journalist said in a comment.
Last Thursday, Turkey’s central bank decided to sharply raise interest rates from 8.5 percent to 8.5 percent. the main base rate reached the level of 15 percent. Economists predicted even greater growth. Immediately after the decision of the Turkish central bank, the lira again fell sharply against the dollar, setting a new all-time low of over 24 lira per dollar.
Turkish lira is the second worst currency in the world
The decision to raise the rate was dictated by the plight of the Turkish economy.
Journalist Holger Zschepitz of Die Welt writes about the lira as “the second worst currency in the world.”
According to Tim Ash of RBC Global Asset Management, Turkish Finance Minister Simsek needs good news - an agreement on Sweden’s membership in NATO at the July 11-12 summit or new money from the Persian Gulf. Simsek was in the UAE last week and relations seem to have improved a lot lately,” he tweeted.
The lira has lost almost 20% against the dollar since the beginning of the year. Over the previous 5 years, the Turkish currency has depreciated by more than 80%, and in 10 years it has lost 92%. its purchasing power against the dollar.
Mehmet Simsek can cure Turkish finances
Mehmet Simsek, mentioned by the German journalist, was appointed Minister of Finance and Treasury in early June. Analysts have high hopes for him: he is perceived as a man with a more rational approach to the economy than his predecessors.
“We’re seeing play around policy normalization,” said Tim Ash of BlueBay Asset Management, quoted by Reuters a few weeks ago.
Analysts believe that the Simsek government will force the central bank to adopt a more rational monetary policy and abandon the model of artificially inflating the value of the lira.
Source: Wprost
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