Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Central bank support falls short to stem lira plunge  Join our daily free Newsletter

MENAFN - Gulf Times - 10/01/2017
No. of Ratings : 0
Add to Mixx!


(MENAFN - Gulf Times) Turkey's central bank yesterday relaxed foreign exchange rules to bolster the lira but the move, shrugged off by analysts, did little to stem the stricken currency's downturn.
The bank said it had reduced its foreign exchange reserve requirement ratios to inject 1.5bn into the market.
But analysts said more firepower was needed, with one saying markets were unimpressed with the 'fairly toothless move.
The bank raced to stop the currency's slide after political instability and security fears in the country following a bloody 2016 drove it to a record low on Monday.
The lira recovered slightly against the dollar after the bank's announcement.
By 1430 GMT it was down 1.6% at 3.77 against the dollar, after an earlier 2% gap.
'Additional steps may be taken in order to maintain price stability and financial stability, the bank said.
Analysts said the central bank would still be under pressure to raise rates when it meets on January 24. While the lira had pared some of its losses against the dollar 'history suggests this may be temporary, said William Jackson at Capital Economics.
'With policymakers clearly spooked by the decline in the lira and today's moves likely to have only a short-term impact, outright hikes in official interest rates look increasingly likely, he said.
The lira, which has lost around 20% in value against the dollar over the last three months, had slumped to a new low on Monday as political uncertainty in the country took its toll.
Pounded by higher-than-expected inflation and security fears, it quaked over a warning from ratings agency Moody's that the slew of attacks in the country were likely to weigh on the economy and squeeze the country's banks. Turkey's Deputy Prime Minister Nurettin Canikli yesterday called the Moody's statement 'irrational and 'an attack.

Analysts had predicted the debate in Turkey's parliament over a controversial new draft constitution aimed at expanding the powers of presidency under Recep Tayyip Erdogan could compound the currency's woes.
The debate kicked off on Monday and is expected to last two weeks, though the uncertainty could drag on for months.
If the measure is approved by parliament, a referendum is expected to take place within 60 days, indicating a date in late March or early April.
'The market sees today's action as fairly toothless, and the move 'will not do anything to reverse the slide in the currency, City Index research director Kathleen Brooks told AFP.
The lira's volatility 'is down to the political uncertainty and fears that President Erdogan's rapid expansion of powers is eroding the country's claim to be a democracy.
'This fear won't be eradicated by central bank action, so there could be further downside ahead, Brooks warned.
NFS Macro analyst Nick Stamenkovic agreed the bank's intervention was 'unlikely to provide much support for the beleaguered currency.
Ahead of the announcement, LCG senior market analyst Ipek Ozkardeskaya said the biggest concern was the 'serious threat to the country's parliamentary regime.
'We stay cautiously away from lira and lira-denominated assets and warn that the sell-off could continue despite the deeply oversold market conditions, she added.
Turkey's rating was lowered to junk status by Moody's and Standard & Poor's last year, and it is facing a similar move by Fitch later this month. Page 6


 


Gulf Times




  MENA News Headlines
 Mar 28 2017 - ROME/CAIRO: Food Security in the Middle East Sharply DeterioratedMENAFN Press
(MENAFN Editorial) iCrowdNewswire - Mar 28, 2017 Food Security in the Middle East Sharply DeterioratedBy IPS World Desk An Egyptian farmer feeding cows fresh fodder. Credit: FAO ...

 Mar 28 2017 - Street & Passing Time Double Bill! An existential play set in a street that could be anyone's the characters are all lost and find they have little to live for.MENAFN Press
(MENAFN Editorial) iCrowdNewswire - Mar 28, 2017 Street & Passing Time Double Bill! From the company that brought you "Dog Sees God", "Not A Word", "A Broken Law " and "MONROE" comes our first ...

 Mar 29 2017 - UAE ranks ninth in global creative goods trade exports touch $16.1bKhaleej Times
(MENAFN - Khaleej Times) Total value of nation's foreign trade of creative industries at $30.7b The UAE ranks ninth in the global list of countries in terms of exports and re-exports of creative ...

 Mar 29 2017 - Free on-arrival visas to Chinese, Russians fuel spurt in Dubai tourist trafficKhaleej Times
(MENAFN - Khaleej Times) China, Russia move up rankings as key source markets for inbound tourism to Dubai. Dubai recorded a significant jump in tourist traffic in the first two months of 2017 on the ...

 Mar 29 2017 - Kuwait- Call to MPs conscienceArab Times
(MENAFN - Arab Times) Ahmad Al-Sarraf On its electronic web page, the Al-Qabas newspaper conducted a poll and asked the opinion of readers on the draft bill to reduce the retirement age of ...

 Mar 29 2017 - Salman and Abdullah II: Summit of promising potentialsArab Times
(MENAFN - Arab Times) Ahmed Al-Jarallah – Editor-in-Chief, the Arab Times EVERYONE knows the importance of the strategic location of the Kingdom of Jordan and its pivotal role in issues ...

 Mar 29 2017 - Kuwait- Original Passport required to do money transfer if you are on Visa 14 (Temporary residence)Arab Times
(MENAFN - Arab Times) Dear Sir, This is to acquire information on the residence status in Kuwait in the following circumstances. Due to some reasons the immigration department issues 3 or more ...

 Mar 29 2017 - Kuwait- Procedure to transfer from Article 22 (Dependent Visa ) to Article 18 (Work Visa)Arab Times
(MENAFN - Arab Times) What is the procedure to transfer from Article 22 visa to Article 18? When my wife came to Kuwait, she had work visa (18). After 4 years we changed this to dependent ...

 Mar 29 2017 - All eyes on IPIC Arena in Abu Dhabi for Jiu-Jitsu ChampionshipArab Times
(MENAFN - Arab Times) The world champions of the Abu Dhabi World Jiu-Jitsu Championship 2016 All eyes will be on the IPIC Arena in Abu Dhabi this April when record numbers of international ...

 Mar 29 2017 - Kuwait- Scorpions clinch 2016 KDD-KBL Championship crownArab Times
(MENAFN - Arab Times) The Scorpions — Winner KDD-KBL 2016 KUWAIT CITY, March 27: The Scorpions won the 2016 KDD - Kuwait Badminton League Championship winning both the September 2016/ February ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help