Is a currency crisis approaching as government looks forward to visit of Saudi prince?

Eyes turn to the visit of Saudi Arabia’s Crown Prince Mohammed bin Salman to Ankara on Wednesday, as dollar / TL starts the week at 17.30 rate. The dollar/TL rose to 17.37 this morning, starting the day at its new highest level since December 20.

While the government’s measures could not prevent upward pressure on the exchange rate, eyes in the market were focused on how to meet the need for foreign currency. This week will be followed by the decision of the Central Bank of Turkey (MB) on interest rates and the visit of Selman.

Salman, who is seen as the de-facto ruler of Saudi Arabia, will visit the capital Ankara on June 22. It is being closely monitored in the markets whether the process will provide a new source of foreign currency and what the amount will be if provided. In this context, a possible swap agreement of Central Bank is also among the issues that are being pursued.

DIPLOMATIC RELATIONS BETWEEN SAUDI ARABIA AND TURKEY START IMPROVING AGAIN

Diplomatic relations between Ankara and Riyadh, which were decimated for past several past years, began to ‘improve’ after the file of journalist Jamal Khashoggi (killed by Saudi authorities at the Saudi Arabian consulate in Istanbul) was returned to Riyadh and President Tayyip Erdogan’s official visit to the country.

Erdogan had also previously met and hugged Selman, who was allegedly ordered by the ruling authorities to kill Khashoggi.

An expert in politics said, “While the Turkish economy is heading towards a foreign exchange liquidity crisis as a result of the wrong economic policies followed, the direction of Saudi-sourced petro-dollars to Turkey is vital for Erdogan in the election countdown.”

SOURCE: diken.com.tr/doviz-krizi-kapida-hukumet-suudi-prensin-yolunu-gozluyor/