Skip to main content

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.
A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey, August 21, 2015. Turkish consumer confidence fell to its lowest in more than six years in August, official data showed on Friday, bruised by political uncertainty, mounting militant violence in the southeast and the lira currency's tumble to a record low. REUTERS/Murad Sezer  - GF10000178275

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.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.


Only $100 per year.