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Dollar-needy Turkey tightens foreign currency rules

Desperate to stop the flight of foreign money, the Turkish government has tightened rules on how cash can be taken out of the country.
A money changer holds Turkish lira banknotes next to U.S. dollar bills at a currency exchange office in central Istanbul April 15, 2015. Turkish Economy Minister Nihat Zeybekci said on Wednesday the lira's slide to record lows was not a cause for concern and reflected global developments, arguing against forex intervention and saying the currency will find its own balance. He also told a meeting in Istanbul that he expected first quarter year-on-year growth of around 1.5 percent, and full year growth exceed
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ANKARA, Turkey — Unable to stop the economic hemorrhage sparked by the flight of foreign investors and money, Turkey’s government has tightened the country’s 26-year liberal foreign exchange rules. Travelers exiting Turkey are now required to make declarations of cash and credit cards or face sanctions on charges of money laundering and smuggling.

The flight of foreign investors and foreign capital from Turkey gathered speed in late 2014. Last year, it accelerated further amid increasing economic and political risks and controversial government moves, including the seizure of private companies, among them media outlets, through an increasingly politicized judiciary and the use of supervisory bodies as a tool to bully business people. Investor confidence was further shaken by a protracted election process — an inconclusive vote July 7 followed by snap polls Nov. 1 — coupled with the resumption of armed conflict with Kurdish militants, deadly terrorist attacks and heavy-handed security crackdowns.

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