Turkey’s feuding with allies hits financial markets
Turkey's lira has sunk to a record low as the government lashes out at NATO and implies the United States is out to harm the Turkish economy.
Turkey’s diplomatic feuding with the United States and other allies has unnerved investors, with the lira sliding to an all-time low and circles close to the government see a foreign plot to undermine the economy.
Deputy Prime Minister Mehmet Simsek, who oversees the economy portfolio, sought to reassure jumpy investors as the lira lost more than 2% of its value against the dollar this week, saying the recent sell-off does not reflect Turkey’s strong macroeconomic underpinning. The economy has proven resilient amid previous shocks, public expenditure is declining and the economy continues to grow, he told an economic panel.
