Turkey pledges action to calm markets

Turkey pledges action to calm markets

Turkey has promised that Lira will act in peaceful markets after falling under a new record in the Asian trade.

Turkey pledges action to calm markets

The country's finance minister told the Turkish newspaper Hurriyat that the details will be unveiled soon.

Berat Albarak said, "From Monday morning our institutions will take necessary steps and share the announcements with the market."

On Friday, Lira lost 20% of its value against the dollar. It had fallen more than 40% in the previous year.

Mr Albarak said that the country will "work fast" and its plan includes assistance for banks and small and medium-sized businesses, which are most affected by the dramatic instability in Lira.

The Turkish President gave assurance of blaming Lira's dip on a conspiracy against the country.

They said, "What is the reason for this storm in tea cup? There is no economic reason ... it is said to do an operation against Turkey."

Recep Erdogan once again urged Turks to buy dollars and buy Lira to help boost the currency.

"I am specifically addressing my producers: Do not go to banks to buy dollars ... You should know that the makers have a duty to stand this country."

Why is Lira falling?

Experts have blamed the fall in Lira because the country is facing a financial crisis.

According to BBC World Service Economist Correspondent Andrew Walker, the Turkish stock market has also declined 17%, while government borrowing costs have increased by 18% annually.

Meanwhile, inflation has declined by 15%.

Investors are worried that Turkey companies who borrow from the construction boom to take huge advantage, they can fight for repaying loans in dollars and euros because the weak lira means that there is more to pay now.

Then there are poor relations with Turkey in the US. Donald Trump's administration struck Turkey's justice and interior ministers with sanctions last week, reacting to American detainee Andrew Brunson's custody, which has been held for nearly two years on the alleged links of Turkish political groups.

Turkey and Lira have given another blow to the tweet on Friday in the US, in which Mr Trump said that he had approved the doubling of tariffs on Turkish steel and aluminium.