Turkish currency drops to three lira to euro


Published — Tuesday 14 January 2014

Last update 22 January 2014 7:10 pm

| نسخة PDF Print News | A A

ISTANBUL: The Turkish currency sank to a record low against the euro, hitting the psychologically key level of three lira to the euro as the country remained embroiled in a deep political crisis.
The euro touched 3.0013 lira in early afternoon trading before closing at 2.9883 while the Turkish currency was at 2.1832 to the dollar.
The Istanbul stock market also lost ground, sliding 0.02 percent to 68,072.50 points.
It has shed over 15 percent since the middle of last year, when the country was rocked by a wave of anti-government protests in June.
The renewed pressure on financial markets since the political crisis erupted last month also reflects continuing investor concern about Turkey's external financial position.
"Turkey is currently facing a dangerous combination of large external imbalances, higher global yields and escalated domestic political tensions," Finansbank said in a commentary.
Official figures released on Tuesday showed some relief however, with the current account deficit for November coming in below market expectations.
The current account deficit for the month stood at $3.9 billion (2.8 billion euros), down from $4.1 billion recorded in November 2012, resulting in a contraction of the 12-month rolling deficit for the first time since March, Finansbank said.
"The external deficit that Turkey can sustain is much lower now. Therefore, we foresee Turkey's external deficits to continue to shrink in the forthcoming period, on account of the weakness of the Turkish lira and a likely weakening of the domestic demand as well as the recovery of the global economy," it said.

What's happening around Saudi Arabia

JEDDAH: Jeddah police have closed all entry points into Makkah to prevent undocumented pilgrims from entering the holy city during this year’s Haj, in a bid to prevent overcrowding that could lead to health and safety problems.Officials have taken ac...
RIYADH: In view of the increasing incidence of MERS in the capital, the Directorate General’s Office of Health Affairs in the Eastern Province has unveiled a set of preventive measures to combat Middle East Respiratory Syndrome (MERS) coronavirus in...
JEDDAH: The Bureau of Investigation and Public Prosecution recently charged three young men in the harassment case at the Jeddah corniche. A number of young men were arrested for harassing two Saudi girls at the corniche a day after Eid Al-Fitr.A vi...
JEDDAH: A total of 232 people injured in Sunday’s Aramco compound fire in Alkhobar have been discharged from hospitals here, the Eastern Province Health Department announced on Tuesday.Fifty-seven are still receiving treatment at four hospitals, with...
RIYADH: The Directorate of Education in Riyadh is keeping a close watch on schools, such as sanctioning health material and monitoring the health of staff and students, to prevent the spread of the MERS coronavirus among students. As a step in this...
RIYADH: The Ministry of Municipal and Rural Affairs has announced new legislation for the Dec. 12 elections, including fines and imprisonment for failure to disclose candidate financing, obstructing procedures or officials, and fraudulent activity.Vi...

Stay Connected