Turkish currency and debt crisis
The Turkish economy has a strong structure to weather the effects of the fluctuations in the exchange rate level, Treasury and Finance Minister Berat Albayrak has said.
"The exchange rate goes down, it goes up. What is important is that Turkey manages all this volatility in a controlled way," Albayrak said in an interview with private broadcaster CNN Türk on Aug. 12.
Turkey is affected by global capital movements as much as other countries, the finance minister said on Aug. 12, referring to the Turkish lira losing ground.
"Turkey is affected much less than before from exchange rate volatilities," Berat Albayrak told CNN Turk.
Albayrak stressed Turkey is managing fluctuations in a controlled manner.
Turkish Health Minister said on June 10 that thanks to the stay-at-home measures, the COVID-19 infection rate has been declined by 50 percent for people aged over 65.
The Turkish economy is expected to bounce back to a record 5 percent growth next year after contracting 3.8 percent in 2020, the Work Bank said in the latest issue of Global Economic Prospects report.
"The economy is expected to return to growth in 2021, on the back of gradual improvement in domestic demand," the bank said on June 8.
The Turkish Central Bank on May 22 boosted its lira swap sale limits from 40% to 50%, according to banking sources.
The bank increased the limit of the swap auctions in the Turkish Lira Swap Market for Foreign Exchange, as per a directive it sent to lenders.
Thus, the banks' flexibility in Turkish lira and foreign currency liquidity management will have further increased.
The Turkish economy, expected to shrink in 2021 like many other countries due to the coronavirus, will bounce back 6% in 2021, the European Bank for Reconstruction and Development (EBRD) said on May 13.
"Turkey is likely to see a contraction of 3.5% in 2020 because of the economic impact of the coronavirus pandemic," the bank stressed in a press release.
Standard & Poor's rating agency on May 6 affirmed Turkey's long-term foreign currency sovereign credit rating at B+ and long-term local currency sovereign credit rating at BB-.
The outlook is stable, said the agency in a statement. It also affirmed the country's short-term foreign and local currency sovereign credit ratings at B.