The Turkish Lira tumbled to a record low against the Pound and US Dollar on Thursday as a corruption scandal evolves into a government crisis that is casting doubt on the future of Prime Minister Erdogan.
Unrest has been endemic in Turkey over the past year as 2013 saw mass protests against Erdogan’s government as people opposed to the leaders attempts to bring religion closer to politics sparked outrage. Now unrest has reared its head again as infighting amongst the Turkish government threatens instability in the nation.
The latest incident saw prosecutors brought graft charges against the sons of three cabinet ministers, the head of a state bank, a big developer and other figures close to the government of Erdogan. Mr. Erdogan responded by firing the prosecutor heading up the case and scores of police officers and by alleging that he is the target of a foreign plot; pro-government media flatly blame Israel and the United States.
The political turmoil has seen the Lira plummet as the Turkish financial markets continue to be rattled by the corruption scandal.
The Turkish Central Banks action last week to sell off its reserves of US Dollars in a bid to shore up the battered Lira has so far proven to be ineffectual. The currency has also been harmed by the Federal Reserve’s decision to begin tapering its monetary stimulus programme later in the month.
The central bank plans to inject $450 million daily until the end of January.
Current Turkish Lira (TRY) Exchange Rates
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 3.6005
The Euro/Turkish Lira Exchange Rate is currently in the region of: 2.9852
The US Dollar/Turkish Lira Exchange Rate is currently in the region of: 2.1752
The Japanese Yen/Turkish Lira Exchange Rate is currently in the region of: 0.02065
(Correct as of 12:40 pm GMT)
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