Pressure from the top: The credibility of Turkey’s central bank is already in question after repeated pressure from President Recep Tayyip Erdogan, who’s embarked on increasingly interventionist economic policies and lashed out at banks for giving negative guidance. - AP
Turkey’s central bank won’t explain what’s behind the recent moves in its foreign currency reserves – and that’s making investors nervous.
The lira weakened more than any other currency on Thursday amid speculation that the central bank was using money borrowed from commercial banks in short-term swaps to inflate its foreign reserve figures. It sank nearly 2% on growing concerns before paring some of those losses.
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