Rolling coverage of the latest economic and financial news
- Turkey’s president Erdogan fired central bank chief over weekend
- Investors fear decision could backfire
- ‘As bad as Brexit’: Turkey faces currency crisis
Here’s a chart showing how the lira tumbled when the financial markets reopened earlier today:
The Turkish lira traded around 7.8 per USD on Monday after tumbling as much as 15% to hit a near-record low of 8.5 after President Tayyip Erdogan abruptly fired the country’s central bank chief, who had been considered the mastermind behind the currency recent strength $USDTRY pic.twitter.com/s93h4HiEPw
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It could be a volatile day in the Turkish financial markets, after president Recep Tayyip Erdogan dramatically sacked the country’s central bank chief early on Saturday.
“This decision is almost as bad as Brexit in terms of being the worst public policy decision I can remember in a country’s history.
“Markets will express their opinions on Monday and it is likely to be an ugly reaction.”
“Such a priority has a high potential to backfire by causing extreme pressures on the lira and contracting the economy even further,” she said.
Related: ‘As bad as Brexit’: Turkey faces currency crisis after Erdoğan sacks bank chief
Kavcioglu sought to ease concerns about a sharp selloff in Turkish assets and a pivot from tight to loose policy, telling bank CEOs on Sunday he planned no immediate policy change, a source told Reuters.
Turkish Lira plummets early Monday morning in Asia. Currency is currently seeing it’s largest-single day drop in nearly 20 years pic.twitter.com/dxwFKHTDVJ
European Opening Calls:#FTSE 6699 -0.15%#DAX 14591 -0.20%#CAC 5996 -0.03%#AEX 681 -0.13%#MIB 24199 0.00%#IBEX 8476 -0.20%#OMX 2163 -0.28%#STOXX 3832 -0.12%#IGOpeningCall
#Monday #markets #Europe expected lower. Turkish lira down 14% as central bank governor sacked #USDTRY. Watching #GBP this week on a raft of UK data. #IronOre 3½ mth lows. Gold breaks rising support. Join @IGTV at 07:30amUK for #EarlyMorningCall – https://t.co/t7xbaLPqC7
