:::::::::: 글로벌번역통역센터 ::::::::::
 
 



 
 
> 고객지원센터 > News & Notice
ADMIN 2018. 10. 21.  
LIST  MODIFY  DELETE  WRITE  REPLY 
   제목: Lira Extends Slide as Erdogan Says Turkey in an Economic War


Lira Extends Slide as Erdogan Says Turkey in an Economic War

By Masaki Kondo ,Yumi Teso and Ruth Carson

August 13, 2018

Turkey is lowering its reserve requirements for the lira and for its dollar liabilities. Ziad Daoud reports.


Turkey’s lira slumped for a fourth day to a new record low, with the sell-off spreading to other emerging-market currencies, after the country’s president showed no signs of backing down in a standoff with the U.S.



The lira tumbled as much as 11 percent against the dollar in thin trading in Asia, before trimming losses as the central bank moved to boost lenders’ access to lira and foreign exchange liquidity. Earlier, the Banking Regulation and Supervision Agency stepped in to limit swap transactions on the battered currency.



“Turkey’s friction with the U.S. is weighing on the lira, and is unlikely to improve anytime soon,” said Takashi Kudo, head of financial markets research at Fujitomi Co. in Tokyo. “Concerns are also growing about European financial institutions due to their exposure to Turkey. All in all, emerging-market currencies are under weakening bias from all those problems.”



The central bank measures will add about 10 billion liras ($1.5 billion), $6 billion, and $3 billion equivalent of gold liquidity to the financial system, the central bank said in a statement posted on its website.

The Turkish currency has been a casualty of a deepening crisis spurred by the administration’s growth-at-all-costs agenda and a worsening spat with the U.S., which sanctioned Turkey over the detention of an American priest. The lira’s plunge sparked tremors through global markets on Monday, dragging a gauge for emerging-market currencies to the lowest in more than a year.

The lira had dropped to as low as 7.2362 against the dollar, with some banks said to avoid providing two-way prices amid unprecedented volatility, before trading at 6.6565 at 9:06 a.m. in Istanbul. The South African rand fell to its weakest in more than two years, while the Mexican peso and the Indonesian rupiah also declined.

Economic War

The sell-off also represents a vote of no-confidence in a new system of government that earlier this year handed President Recep Tayyip Erdogan unrivaled authority, essentially paralyzing the bureaucracy in Ankara.




In speeches Sunday, Erdogan remained defiant, vowing never to give in on interest-rate hikes while saying the country is in an “economic war.” He also ruled out an agreement with the International Monetary Fund.

“The decline in the lira is multifaceted, caused not only by a weak external position in terms of current account deficit and inadequate currency reserves, but also the challenging political environment which exacerbates the vulnerabilities in the lira,” said Kerry Craig, global market strategist at J.P. Morgan Asset Management.

The extended rout in the lira also weighed on the euro and the Australian dollar, while spurring haven demand. The euro fell 0.3 percent against the greenback, while the yen strengthened against every Group-of-10 peer and Treasuries were bought.

“The euro is especially vulnerable given its exposure to the Turkish economy, and I’d expect to see further haven flows to the yen and dollar,” said Nick Twidale, chief operating officer at Rakuten Securities Australia Pty.

Runaway Inflation

Years of a growth-at-all-costs policy bias have left Turkey’s companies saddled with hundreds of billions of dollars in foreign debt, runaway inflation and one of the world’s largest current-account deficits.

“There’s nothing as yet to suggest that the government, or Turkish central bank, is poised to announce the fiscal or monetary policy measures capable of quickly restoring confidence in Turkey,” said Ray Attrill, head of foreign exchange strategy at National Australia Bank Ltd. in Sydney.

Read a QuickTake on Why Turkey Can’t Stop Its Economic Nose-Dive

Turkey’s central bank -- which has raised its main policy rate to 17.75 percent -- unexpectedly refrained from a further hike at its last meeting.

While investors are pleading for dramatic central bank action to bolster the lira, Turkish officials fear that even a huge increase in borrowing costs could be quickly offset by another round of U.S. sanctions, according to two people familiar with the thinking of the country’s economic administration.

Dangers Ahead

A Turkish acknowledgment of the dangers ahead is nevertheless needed to soothe markets and even if the central bank provides only a stop-gap solution, it should still be done, according to Refet Gurkaynak, a professor of economics at Bilkent University in Ankara.

“It will signal that they are not looking at off-market solutions such as capital controls, conversion of FX deposits" and other unorthodox policies, he said. “To work, it will have to be large and would have to be accompanied by a ‘whatever it takes’ statement."

Turkey’s government debt plummeted on Friday, driving the yield on 10-year debt to a record close of 22.11 percent. Five-year credit-default swaps -- the cost to insure the bonds against default -- climbed 75 basis points to 453 basis points Friday evening in New York, the highest level since March 2009, CMA data showed.

Selected articles from Bloomberg
LIST  MODIFY  DELETE  WRITE  REPLY 





전체글 목록 2018. 10. 21.  전체글: 701  방문수: 2161332
 공지  정규직,계약직,프리랜서직 모집 
701   Tencent Faces New Rivals Just as It Starts to Get Anti-Social
700   Paul Allen, Billionaire Who Co-Founded Microsoft, Dies at 65
699   World’s Largest Car Market Faces Historic Drop
698   Nordhaus, Romer Win 2018 Nobel Prize in Economic Sciences
697   Hong Kong's Economy Gets Stuck Between U.S.-China Trade War
696   Indonesia's Weak Currency a Source of Strength, World Bank Says
695   Jack Ma Cedes Alibaba Licenses. Investors Won’t Get Control
694   After Settling With SEC, Musk Tries to Answer Other Question
693   Hacker to Live-Stream Attack on Zuckerberg뭩 Facebook Page
692   iPhone XS Buyers Undeterred by Eye-Watering Prices, Few Upgrades
691   Stocks Advance as Treasuries Steady; Dollar Slips: Markets Wrap
690   Trump Praises North Korea's Kim for Progress in Nuclear Talks
689   Meet the Billionaire Dreamer Taking Musk's Rocket to the Moon
688   JPMorgan Predicts the Next Financial Crisis Will Strike in 2020
687   Trump Tariffs Spark Industry Campaign to De-Escalate Trade War
686   How Jack Ma Became the Role Model for China's Startup Generation
685    Musk Uses Flame Thrower and Smokes Weed on Comedy Show
684   Nike Decides a Colin Kaepernick Deal Is Worth the Backlash
683   August Turns Ugly for Emerging Markets as Currency Crises Spread
682   Professional gamers, dream job for many amid esports boom 
681   Warren Buffett Agrees on Backing India's Paytm 
680   A Populist Wave Ousts Australia's Turnbull 
679   Chinese Phone Giant Xiaomi Delivers Growth in First Results
678   Businesses beg for tariff relief as trade war with China rolls on
677   the Airbus 380 the future of air travel or a relic of the past?
676   Amazon is reportedly thinking about buying the Whole Foods of movie theaters. Is that a good idea? 
675   Musk Says He's Tapped Goldman, Silver Lake on Tesla Bid Plan
674   Lira Extends Slide as Erdogan Says Turkey in an Economic War
673   Turkish Lira Tumbles as Investors Panic Before Erdogan Address 
672   Musk Mystery Enters Day 3 as Pressure to Show the Money Mounts 
RELOAD VIEW DEL WRITE
1 [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] 24