Turkey currency crisis explained

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The Turkish lira is in melt down - it''s lost around a quarter of its value against the US dollar this month and around 45 per cent so far this year. The country''s Central bank has moved to calm the storm ...... making short term credit more easily available ...However, there''s been no sign of a hike in interest rates Traders still have the jitters. CHIEF MARKET STRATEGIST WH IRELAND, MIKE INGRAM, SAYING:I very much doubt that what''s been announced in Turkey at the moment is going to be sufficient to stabilise certainly the Turkish lira which has been the focal point for most investors. I think the basic problem as I keep coming back to is that under Erdogan the economic institutions have been largely hollowed out."Statements by President Recep tayyep erdogan are being seen as worsening the crisis.He called on the central bank over the weekend not to raise interest rates.He has shown no sign of turning to two options: asking the IMF for help and limiting money transfers.eThe currency has been hit too by worsening ties with Washington - a stand-off overthe jailing of an American pastor led to new US tarriffs on Turkish steel and aluminium .. Erdogan accuses the US of plotting against his country.SOUNDBITE - Recep Tayyip Erdogan, Turkish Pdt"We are together in NATO and then you seek to stab your strategic partner in the back. Can such a thing be accepted?"Adding to concerns ... is Erdogan''s decision to name his son-in-law as Finance Minister ...... making people question just what direction Turkey''s economic policy is taking.

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