DUBAI: The Turkish lira has plummeted 22 percent this year, but an Arab News Twitter poll found that most people still don’t have the confidence to invest in the tumbling currency.
About 18 percent of the 1,438 respondents said that a weak lira was worth investing in, while nearly 82 percent said the risk was too great.
Traders will buy currency when it is weak, but tend to only do so if there is confidence that it will eventually climb back up in value – thus making a profit.
The lira – already impacted by the coronavirus and President Recep Erdogan’s authoritarian style of leadership – has suffered increased problems as he printed more money to bolster spending, but instead his plan led to a further devaluation.
Turkey and Erdogan are facing widespread condemnation for their foreign policy, which has seen the country intrude into Greek-claimed waters and interference in Libya and Syria.
There is also growing concern of civil unrest inside the country.
On Monday the currency reached record lows, touching 7.6 against the US dollar – it has lost half its value since the end of 2017.