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Turkey-Currency Fluctuation/Analysis
Istanbul, Turkey - May 25, 2018 (CCTV - No access Chinese mainland)
1. High-rise buildings
2. Building of Sekerbank sign
3. Currency exchange counter
4. Currency exchange board
5. People working at office
6. SOUNDBITE (English) Burak Kanli, chief economist, QNB Finansinvest:
"The first one is high inflation, reusing the real rate of return of the [inaudible] of the central bank of Turkey. But more importantly, concerns about the independence of the central bank, and the medium-term inflation outlook."
7. Various of screens
8. SOUNDBITE (English) Filiz Katman, assistant professor of political science and international relations, Istanbul Aydin University (starting with shot 7):
"It is America (that) increased the interest rate in order to attract investors to take their dollar investment out of country to return to America, which means that fragile economies, which investments are mainly focused on foreign direct investments like Turkey. That's why Turkey is highly affected."
9. Various of people working in office
10. SOUNDBITE (English) Filiz Katman, assistant professor of political science and international relations, Istanbul Aydin University:
"This is the problem with regard to skepticism about what will happen next. If it will become a new presidency system, where the system will be re-regulated, new methodologies will be involved, and these kind of changes, kind of created a problem in the minds of investors in Turkey."
FILE: Turkey - Date Unknown (CCTV - No access Chinese mainland)
11. Currency-counting machine
12. Various of clerk counting notes
Turkey's currency lira has fallen to an all-time low against the U.S. dollar amid fears of economic instability as the country heads toward crucial elections next month.
The lira dropped to 4.92 against U.S. dollar on Wednesday morning, down more than 5 percent since Tuesday. The currency recovered some of its losses in the day, but was still very prone to fluctuation.
The Turkish Central Bank, which had scheduled a monetary policy meeting on June 7, was under pressure to hold an emergency meeting later Wednesday to sharply increase rates by 300 basis points from 13.5 percent to 16.5 percent. Prompted by the measure, the lira sharply rallied to 4.55 at day-end closing, but declined to a fresh low of 4.80 Friday to Saturday. The currency has lost more than 20 percent of its value against the dollar since the beginning of this year.
Experts believe the currency plummet is associated with the country's rickety economy marked by high inflation and unemployment, current account deficit and external debt.
"The first one is high inflation, reusing the real rate of return," said Burak Kanli, chief economist with the QNB Finansinvest. "But more importantly, concerns about the independence of the central bank, and the medium-term inflation outlook," he added.
Others attribute the Lira tumble to U.S. Federal Reserve's possible rate hike - according to the minutes of the central bank's latest policy meeting, the Fed expects to raise interest rate "soon", if economic outlook was in line with expectation of its officials.
According to Filiz Katman, an assistant professor of political science and international relations with Istanbul Aydin University, it's the U.S. that has increased the rate of interest to attract investors.
Fragile economies' investments are mainly focused on foreign direct investments, Katman explained. "That's why Turkey is highly affected," she said.
Another factor swaying the currency is the country's upcoming presidential elections. Opinion polls showed that Turkish President Recep Tayyip Erdogan is the frontrunner of the presidential race due on June 24. During a recent visit to London, he said he planned to have a greater say in monetary policy if he wins the elections, which caused a further plunge of his country's currency amid fears that the independence of the central bank could be affected.
"This is the problem with regard to skepticism about what will happen next. If it will become a new presidency system, where the system will be re-regulated, new methodologies will be involved, and these kind of changes, kind of created a problem in the minds of investors in Turkey," added Katman.
Turkey-Currency Fluctuation/Analysis
Dateline : May 25, 2018/File
Location : Istanbul,Turkey
Duration : 2'06
Istanbul, Turkey - May 25, 2018 (CCTV - No access Chinese mainland)
1. High-rise buildings
2. Building of Sekerbank sign
3. Currency exchange counter
4. Currency exchange board
5. People working at office
6. SOUNDBITE (English) Burak Kanli, chief economist, QNB Finansinvest:
"The first one is high inflation, reusing the real rate of return of the [inaudible] of the central bank of Turkey. But more importantly, concerns about the independence of the central bank, and the medium-term inflation outlook."
7. Various of screens
8. SOUNDBITE (English) Filiz Katman, assistant professor of political science and international relations, Istanbul Aydin University (starting with shot 7):
"It is America (that) increased the interest rate in order to attract investors to take their dollar investment out of country to return to America, which means that fragile economies, which investments are mainly focused on foreign direct investments like Turkey. That's why Turkey is highly affected."
9. Various of people working in office
10. SOUNDBITE (English) Filiz Katman, assistant professor of political science and international relations, Istanbul Aydin University:
"This is the problem with regard to skepticism about what will happen next. If it will become a new presidency system, where the system will be re-regulated, new methodologies will be involved, and these kind of changes, kind of created a problem in the minds of investors in Turkey."
FILE: Turkey - Date Unknown (CCTV - No access Chinese mainland)
11. Currency-counting machine
12. Various of clerk counting notes
Turkey's currency lira has fallen to an all-time low against the U.S. dollar amid fears of economic instability as the country heads toward crucial elections next month.
The lira dropped to 4.92 against U.S. dollar on Wednesday morning, down more than 5 percent since Tuesday. The currency recovered some of its losses in the day, but was still very prone to fluctuation.
The Turkish Central Bank, which had scheduled a monetary policy meeting on June 7, was under pressure to hold an emergency meeting later Wednesday to sharply increase rates by 300 basis points from 13.5 percent to 16.5 percent. Prompted by the measure, the lira sharply rallied to 4.55 at day-end closing, but declined to a fresh low of 4.80 Friday to Saturday. The currency has lost more than 20 percent of its value against the dollar since the beginning of this year.
Experts believe the currency plummet is associated with the country's rickety economy marked by high inflation and unemployment, current account deficit and external debt.
"The first one is high inflation, reusing the real rate of return," said Burak Kanli, chief economist with the QNB Finansinvest. "But more importantly, concerns about the independence of the central bank, and the medium-term inflation outlook," he added.
Others attribute the Lira tumble to U.S. Federal Reserve's possible rate hike - according to the minutes of the central bank's latest policy meeting, the Fed expects to raise interest rate "soon", if economic outlook was in line with expectation of its officials.
According to Filiz Katman, an assistant professor of political science and international relations with Istanbul Aydin University, it's the U.S. that has increased the rate of interest to attract investors.
Fragile economies' investments are mainly focused on foreign direct investments, Katman explained. "That's why Turkey is highly affected," she said.
Another factor swaying the currency is the country's upcoming presidential elections. Opinion polls showed that Turkish President Recep Tayyip Erdogan is the frontrunner of the presidential race due on June 24. During a recent visit to London, he said he planned to have a greater say in monetary policy if he wins the elections, which caused a further plunge of his country's currency amid fears that the independence of the central bank could be affected.
"This is the problem with regard to skepticism about what will happen next. If it will become a new presidency system, where the system will be re-regulated, new methodologies will be involved, and these kind of changes, kind of created a problem in the minds of investors in Turkey," added Katman.
ID : 8081682
Published : 2018-05-27 13:37
Last Modified : 2019-03-14 13:28:00
Source : China Central Television (CCTV)
Restrictions : No access Chinese mainland
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