Turkish lira makes gains on renewed optimism
After hitting a series of record lows, Turkey’s currency rebounded more 7% this week as investors expect sharp policy reversals by the nation’s newly appointed economy team.
ISTANBUL — Investors are placing new faith in the fresh faces appointed to Turkey’s economy team this week, sending the nation’s markets soaring on expectations of rapid policy reversals.
Turkey’s lira rebounded more than 7% since hitting a record low of 8.58 per dollar Friday, scaling back steep losses that placed it among the world’s worst performing currencies in 2020.
The developments come after Turkish President Recep Tayyip Erdogan appointed longtime figures in his ruling Justice and Development Party (AKP), former Finance Minister Naci Agbal and former Deputy Prime Minister Lutfi Elvan, to head Turkey’s Central Bank and Finance Ministry, respectively.
In initial comments this week, the pair pledged to combat the nation’s double-digit inflation and pursue predictable monetary policies in effort to stabilize the Turkish economy. Investors are now waiting to see if they follow through with a key interest hike during a monetary policy committee meeting scheduled for Nov. 19.
