After the dismissal of the President of the Central Bank, Erdogan caused a crisis that occurred to investors, which made it very difficult to invest and difficult in the financial exchange between the Turkish factory and the foreign currency.
Analysts said the big increase was a sign it was becoming more difficult for foreign investors to hedge their exposure to lira assets, unwind their bullish positions or bet against the currency. The lira tumbled as much as 14 per cent on Monday, before finishing the day with a 7.4 per cent decline.
“Foreign investors are trying to liquidate long lira positions in a rush this week following the unexpected development over the weekend of the dismissal of the [central bank] governor,” said Onur Ilgen, head of treasury at MUFG Bank Turkey
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