Turkish lira remains stable after US sanctions
Turkey’s currency remained relatively stable Tuesday after the United States imposed limited sanctions on Ankara for acquiring Russian-made S-400 missile defense systems.
ISTANBUL — The Turkish lira was unrattled Tuesday after the United States imposed sanctions on Ankara over its 2019 acquisition of Russian-made S-400 missile defense systems.
The currency rallied 1% to 7.82 per dollar Monday following the announcement, holding steady at around 7.84 through Tuesday as some market observers concluded the long-looming threat of US Countering America's Adversaries Through Sanctions Act (CAATSA) penalties had already been priced into Turkish markets.
Market reactions were also buoyed by the limited scope of the CAATSA sanctions, which largely spared Turkish financial and economic institutions, instead targeting four individuals linked to Turkey’s Defense Industries Directorate (SSB) and placing a ban on future US export licenses to the SSB, excluding past contracts that remain active.
“The US establishment wanted to send a message to the Turks, but in the end Turkey’s a key strategic partner,” Timothy Ash, an analyst at BlueBay Asset Management, told Al-Monitor, adding, “This is more a slap on the wrist.”
