7/8/2019, 9:11 AM (Source: TeleTrader)
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Turkish lira falls to eight-day low versus dollar

Market participants showed concern on Monday about the future of Turkey's economy, as evident from the plunge in the exchange rate of the country's currency and a slide in stocks in Istanbul. President Recep Tayyip Erdogan has replaced on July 6 Murat Cetinkaya, governor of the Central Bank of the Republic of Turkey, with his deputy Murat Uysal. The chief rate-setter's four-year term was expiring next year.

While the successor promised to maintain policymakers' independence, concern increased about potential overheating as a result of political pressure. Cetinkaya was the target of Erdogan's rage for a long time as the president pressured him to lower interest rates even though inflation got out of hand and foreign exchange reserves were being depleted. The head of state has gone so far as to compare the rise in borrowing costs to treason. Leaks to the media indicated the governor has recently refused to resign. The ruling Justice and Development Party (AKP) has lost after a controversial rerun of elections in Istanbul.

The euro jumped 2.2% to 6.46054 Turkish liras at 9:10 am CET after touching 6.49843 for the first time since July 1. The dollar was 2.22% up at 5.75314 just after jumping to a month-to-date record of 5.78639 Turkish liras. The Dow Jones Turkey Titans 20 equity index dropped 1.56% to 1,000.71 points, its lowest mark in a week.

Baha Breaking News (BBN) / IT