Erdogan Urges Turks To Stick With Collapsing Lira, Warns Financial Speculators "
Erdogan Urges Turks To Stick With Collapsing Lira, Warns Financial Speculators "Will Pay A Heavy Price"
The ailing currency has lost over 20% of its value against the U.S. dollar this year as The FT points out that a volatile mix of electoral populism and a rising dollar have pushed the country to the brink of a currency crisis. At the helm is a leader obsessed with growth, who has long dismissed higher rates as a way to make “the rich richer and the poor poorer” and often feuded with the country’s central bank.
Despite the actions of the central banks and the threats, promises, and cujoling of Erdogan, the lira continued to weaken. On Tuesday, after a warning from the rating agency Fitch put more pressure on the currency, Turks began to share rumours of impending capital controls and rushed to buy gold, which has been doing what gold does... maintaining the wealth of those who hold it...