Turkey Lira: Turkey MELTDOWN could last LONGER than markets think, expert claims
A TOP economics expert has warned that “there is no easy solution” to Turkey’s economic troubles as the lira continues to plunge over worsening relations with the USA and fears that the country is facing an economic crisis.
By SORCHA BRADLEY
Express.co.uk
Mon, Aug 13, 2018
Steve Goldman, the managing director of investment firm Kapstream Capital warned that the lira would continue to fall as long as relations between Turkey and the USA remained frosty.
Mr Goldman said: “How long this lasts depends on how long Erdogan continues his fight with Trump over that pastor.
“My guess is that this is going to last a lot longer than the markets think.”
The US government sanctioned Turkey’s justice and interior ministers with sanctions last week after Turkey refused to release American pastor Andrew Brunson.
The US government sanctioned Turkey’s justice and interior ministers with sanctions last week after Turkey refused to release American pastor Andrew Brunson.
Turkey says that the pastor is linked to the banned Kurdistan Workers Party which Turkey blames for a failed coup in 2016.
In a move sure to further exacerbate worsening relations, President Donald Trump doubled tariffs on aluminium and steel imports from Turkey, deepening the currency’s losses and raising concerns that the crisis could weigh on other economies.
The currency has lost 20 per cent of its value against the dollar and fallen more than 40 per cent this year amid tension over Mr Erdoğan’s control over the economy and deteriorating relations with the US.
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