The Turkish lira's perfect storm
Thursday, May 07, 2020 10:46 a.m. EDT by Thomson Reuters
FILE PHOTO: A merchant counts Turkish lira banknotes at the Grand Bazaar in Istanbul, Turkey, March 29, 2019. REUTERS/Murad Sezer
By Marc Jones
LONDON (Reuters) - Turkey's lira has slumped to a record low and worries are mounting that it is being sucked into a perfect storm.
The coronavirus is bringing a deep recession, analysts estimate the central bank has used up roughly a quarter of its freely available currency reserves in recent months and with huge dollar-denominated liabilities to service there are question marks about what its policy response is.
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