Turkish lira tests new historic lows as rift with EU widens

By bne IntelliNews November 16, 2016

The Turkish lira hit a new historical low of 3.3203 against the dollar on November 16 as Ankara's rift with Brussels is growing amid calls for end of accession talks. 

The lira has been on the free fall in recent months as internal woes are adding to turbulence on emerging markets. The currency came under renewed pressure as relations between Turkey and the European Union are growing increasingly tense. The European Parliament is expected to vote next week on a resolution calling for the suspension of membership talks with Turkey in response to President Recep Tayyip Erdogan’s crackdown on dissent after July’s failed coup attempt.

Though non-binding, the resolution could further intensify tensions with Ankara, which is becoming increasingly frustrated with the fact that, after 11 years of negotiations, its prospects of joining the EU look more remote than ever. Erdogan even suggested this week that Turkey could hold a referendum on whether to continue membership talks.

The recent turbulence on emerging markets after Donald Trump’s unexpected victory, the FED’s expected rate hike next month, geopolitical risks related to the ongoing conflicts in Syria and Iraq along with domestic woes have been weighing on the Turkish lira in recent months.

The government in Ankara, however, is shrugging off weak lira concerns. Deputy Prime Minister Numan Kurtulmus said on November 14 that the US dollar was strengthening against the lira not because of the problems in the fundamentals of the Turkish economy, but it is rallying against other currencies as well. The weakening of the lira is only temporary, and should not cause concerns, Kurtulmus also said.

The lira gained some ground later on November 16, rising 0.895 to trade at 3.3174 against the dollar at 14:44 Istanbul time. The benchmark BIST-100 index was down 0.29%.

Related Articles

Turkey postpones plan to sell firms seized after coup attempt

Turkey has put on hold its plan to sell almost 600 companies worth about $10bn seized in the aftermath of the failed military coup, people familiar with the matter told Bloomberg on March 23. The ... more

Turkey to maintain EU economic relations but review political ties, says Erdogan

Turkey will maintain its commercial ties with the European Union but will review its political and administrative ties with the bloc after the April 16 referendum, Turkish President Recep Tayyip ... more

Turkey easily tops table for Twitter content removal requests

Turkey accounted for more than half of all content removal requests received worldwide by Twitter during the second half of 2016, according to the social media company’s ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss