Mar 23 2018

Erdoğan adviser: Wrong to say lira fell to record

Turkish President Recep Tayyip Erdoğan’s senior economic adviser said it was wrong to say that the lira hit a record low against the dollar on Friday because trading in Asian markets was not sufficiently liquid.

Cemil Ertem maintained that any trade in the lira at 3.85 per dollar or weaker is speculative. He made the comments to the Sabah newspaper.

The lira slid to more than 4.03 per dollar in early trade in Asia on Friday, leading a sell-off in emerging market currencies. It recovered to 3.962 at 10:33 a.m. in Istanbul, 0.7 percent lower on the day. Investors are concerned that Turkey’s widening current account deficit and double-digit inflation leaves it vulnerable to switches in global sentiment in the absence of interest rate increases by the central bank.

The lira will settle at appropriate levels under Turkey’s free-floating currency regime, Ertem said.