The British newspaper "Financial Times" revealed features of the suffering of the Turkish economy, at a time when President Recep Tayyip Erdogan continues his uncalculated military adventures and his open support to terrorist militias in many countries of the region, the last of which is Libya.
In a report, the newspaper said that Erdogan's failed attempt to stabilize the local currency eroded Turkish foreign exchange stocks, as the Turkish lira fell 1.6% on Tuesday to 6.97 against the dollar, the weakest level since May.
The Turkish lira fell to the lowest level against the dollar since May in the second day of trading, even as the authorities spent about two billion dollars in an attempt to stop the intensive selling.
The turmoil has brought strong resistance from Turkish banks, and a London analyst said that lenders only sold about $ 1.2 billion on Monday by 8:30 am London time sold another $ 600 million. An international fund manager estimated that the banks were selling about $ 1 billion every day, but the bailout attempts were unsuccessful.
The central bank did not immediately respond to a request for comment on the intervention this week and previously denied it was targeting a specific level of the currency, saying it only worked to calm volatility.
Many economists and investors say that Turkey seeks to link the lira effectively at a specific level against the dollar, but the intervention came at a significant cost to Turkey, which has eroded the country's foreign reserves.
Turkey has spent about $ 60 billion this year on currency interventions, according to an estimate by investment bank Goldman Sachs. Piotr Matisse, emerging market currency strategist at Rabobank, said it was surprising that Turkey had to struggle to defend the lira against the dollar when the dollar was weakening. "The dollar is weak, yet the lira does not benefit at all," he said.
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