Published On: Sun, Nov 8th, 2020

Fitch says Turkey not doing enough to strengthen lira; Interest rates likely to climb

The Chief Turkey analyst at Credit Rating Agency Fitch, warned that Turkey is not doing enough to strengthen its currency and predicted that interest rates would rise by the end of the year.

Winslow told Reuters that falling foreign exchange reserves, double-digit inflation and expected exchange rate pressure had “significantly increased the chances of a formal rate rise by the end of the year.” As was circulated on media a short while ago, Central Bank President Murat Uysal was dismissed, and replaced by Naci AGBAL

Fitch expert explained that in recent months, tightening credit and foreign currency reserves was insufficient to reverse the downward trend in the lira and said that the central bank was independent of political underlining to a limited extent against the oppression. He added that the bank was too slow in responding to the developments and the loose policy practiced increased the risk of  external imbalances market instability.

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