Turkey’s economy “under global attack” - Turkish ruling party
Turkey's ruling Justice and Development Party (AKP) Deputy Chairman Numan Kurtulmuş on Thursday said the country is "under global attack", responding to a question related to the devaluation of the Turkish lira in recent days. The Turkish lira fell to new all-time low of 7.26 against the U.S. dollar on Thursday.
Speaking on the pro-government channel T24, Kurtulmuş said, "to shoot up the foreign currencies means decreasing our citizens' purchasing power. Turkey would not to be discouraged by (such a development). We will be careful, be awake and will try to do our best to protect our citizens," Independent Turkish reported.
Kurtulmuş also said European countries and the United States have proven to be “paper tigers” when it comes to coping with the global pandemic during the current crisis.
Kurtulmuş, arguing that the Turkish lira is now actually at reasonable levels against the dollar, predicted that the exchange rate between the American and Turkish currencies will go back to previous numbers soon.
Turkey banned Citigroup, Swiss Bank UBS and BNP Paribas of France from trading in liras on Thursday morning, the move receiving backlash from renown Turkey economists.
Economist Tim Ash, who covers Emerging Europe and other regions, tweeted that the Turkish banking watchdog's decision amounted to "declaring war on foreign banks".
Hugely damaging move though which will make it harder to transact in lira and therefore harder for the economy as a whole. In effect declaring war on foreign banks is not going to improve the mood music around Turkey. https://t.co/Rthy236lr5— Timothy Ash (@tashecon) May 7, 2020
Paul McNamara called the lira exchange ban "absolute carnage".
Absolute carnage in Turkish lira. Banning three huge foreign banks means the instinctive trade is to close all risk. And foreigners are short.— Paul McNamara (@M_PaulMcNamara) May 7, 2020