Global markets are looking for the impact of the Turkish lira crisis

trump and erdogan

Observers and analysts: Investors have defended the dollar because of the deterioration of the Turkish lira as a safe haven

 Eco – Fady Labib :The international media continued to pay attention to the Turkish lira crisis and its impact on the economic situation inside Turkey and abroad. In the British press there is a focus on the fears of the spread of this financial crisis on the global situation ...

The Guardian published a report by its economic editor, Larry Elliot, From a global crisis as Turkey struggles to curb its currency decline, "the report says. A new deterioration in the Turkish lira has sent aftershocks to global financial markets amid fears that the failure of the Turkish government, Erdogan, to deal with the crisis in the steady financial Which is similar to the Domino principle of other vulnerable economies, explaining that the Argentine peso and the South African rand were among the most affected in the volatile monetary transactions, which witnessed a new 8 per cent drop against the dollar at a time when Erdogan attacked what he called " In social media, "and accused US President Donald Trump of stabbing Turkey in the back.

The crisis in the Turkish lira extended to emerging markets and economies, battling stock markets, bonds and currencies, analysts said. Analysts warned that the crisis was spreading to other countries. The Argentine central bank unexpectedly raised interest rates by 5 percent, after the decline of the Argentine currency (peso) for the sixth day against the dollar, and quoted "Katie Nixon," the head of the investment sector in the management of the "Norzen Trust" financial services, saying that "the fear that what happened in Turkey will not remain confined to it" .

While "Bloomberg" said that the crisis of the Turkish lira is threatening Turkish companies, financial institutions and the government, which has at least $ 16 billion in foreign currency bonds, which is due to expire by the end of next year. That investors are closely watching the situation in Turkey to see if Turkish banks and other companies will maintain access to the foreign financing they need to maintain economic activity as the country's currency declines. As Turkey relies on external financing, the Turkish currency crisis canTo become a debt crisis, they say, especially for companies with a high debt sustainability, especially for foreign exchange movements.

According to the network The "BBC" news that experts are likely to a number of factors that contributed to the decline in the value of the Turkish process and thus the emergence of the economic crisis facing Turkey in the foreclosure period, including that investors in Turkey have been worried for some time because of large loans taken by Turkish companies in currency The concern is that these companies face difficulties in repaying these loans due to the devaluation of the Turkish lira as they have to buy difficult currencies especially the US dollar and the euro at a time when the value of the lira Yeh as well as the deterioration of relations with the United States as the imposition of US President Donalld Trump sanctions on the Ministers of Interior and Justice Turkish recently responded similarly Turkey.

Investors were worried that Turkey would not be able to finance its annual $

218 billion annual foreign debt requirements, which include funds to keep Turkey's foreign debts in debt and the nation's huge current account deficit, according to a report by ABN Amro. Turkey is at risk from developments in the United States. The Federal Reserve continues to raise interest rates to encourage investors to withdraw money from emerging markets. This has not had a strong impact, but it can be a worrying factor for countries with multiple points Weakness is like Turkey.

European banks ..  the crisis

The crisis of the Turkish lira against major European banks including Deutsche Bank, Germany's Comtez Bank, Unicredit and Italy's Entesa Sanpaolo has reflected a decline in trading. Michael Hooson, analyst at C "Investors viewed the monetary crisis in Turkey as a local problem, but it appears that the rapid deterioration of the lira strengthens concerns that European banks may be exposed to the Turkish banking system," said Mark Mercers, commenting on the deterioration of the Turkish lira. Gold prices rise due to the Turkish lira Gold prices rose due to the deterioration of the Turkish lira as the demand for the metal as a safe haven was boosted by the Turkish lira crisis, while the dollar is also rising, raising the cost of gold to its buyers in other currencies. Investors have defended the dollar due to the deterioration of the Turkish lira as a safe haven Turkish currency up 23% to a record low and the decline of the Russian ruble to its lowest price in more than two years and touch the euro and pound sterling the weakest levels in a year. "With Turkey's turbulence spreading and the Turkish lira falling into other markets, gold, traditionally seen as a safe investment in uncertain times, has attracted some extra attention," said Saxony Bank analyst Ole Hansen.