Turkish Thunder is Gone, Lira Thunder Remains to Ruin

Turkish Thunder is Gone, Lira Thunder Remains to Ruin

Turkey has been facing a currency deceleration for weeks now. At 0441 GMT, the Turkish lira traded at 13.6185 against the U.S. dollar, down from closing at 13.415 on Tuesday. Late Tuesday, it fell to a new low of 14.

The flagship BIST 100 stock index (. XU100) climbed 0.03 percent to 1,809.65 points on Tuesday. On Wednesday, Asian stocks climbed from a one-year low as U.S. stock futures and oil recovered from the previous day’s selloff. However, investors were concerned about the impact of the Omicron coronavirus variety.

Erdogan Plans for Mitigation 

President Tayyip Erdogan will speak to members of his ruling A.K. Party in parliament (0900 GMT). Later, he will attend an education conference (1100 GMT). Moreover, Foreign Minister Mevlut Cavusoglu will be in Riga on the second and final days of a NATO Foreign Ministers conference. He will meet with some of his NATO counterparts. Furthermore, Meral Aksener, the opposition Iyi Party’s chairperson, will speak to M.P.s from her party in parliament (0730 GMT).

Mustafa Sentop, the Speaker of the Turkish Parliament, will go to Warsaw to meet with his Polish counterpart and other authorities. He’ll attend a joint press conference with Elzbieta Witek, the Speaker of the Polish Parliament.

Outlook on Lira

On Tuesday, Turkish Lira fell to record lows versus the dollar and the euro. Therefore, the currency ended a historic month of selling after President Tayyip Erdogan reiterated his support for aggressive interest rate cuts amid widespread criticism and rising inflation. Hence, according to official numbers released on Tuesday, Turkey’s economy grew 7.4% year on year in the third quarter, meeting projections thanks to strong retail demand, manufacturing, and exports. This is while the economic growth did not lessen concerns over policy setting. 

Turkey’s minimum wage committee will meet under the chairmanship of Labor Minister Vedat Bilgin to examine salaries in 2022. (1100 GMT). Erdogan announced on Tuesday that the government would boost the minimum salary next year to safeguard employees from price rises.

Effects on Medicine

Customers, pharmacists, and industry leaders warned of supply interruptions due to a currency fall. Hence, Turkish authorities are looking into inconsistencies between records and real supplies of various medications.