Turkey hits inflection point after currency drop and downgrade

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By Mariam Meskin
14 Sep 2020

During the last week, Turkey’s currency has hit damning lows and the sovereign has been given another credit downgrade. Many say these events should prompt the country to enact serious fiscal and monetary reforms.

On Thursday, the Turkish lira tumbled to an all-year low against the dollar, falling to TL7.55 to $1.00. The lira started the year at TL5.94.

The drop followed sustained uncertainty in markets, coupled with Moody’s downgrading the Turkish sovereign from B1 to B2 on Friday while maintaining its negative ...

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