Turkish Lira's depreciation 'not due to economy'

Turkish economy minister claims the main cause for Lira's depreciation is perceived risks, not economic factors...

Turkish Lira's depreciation 'not due to economy'

World Bulletin / News Desk

The recent depreciation of the Turkish Lira is believed to be a result of the country's political and perceived risks, opposed to economic factors, Turkey Economy Minister Nihat Zeybekci said on Monday.

In late December, the US dollar hit a historic high against the Turkish Lira, which was valued at US$2.1827, as global markets' demands on the US dollar increased.

Dismissing concerns that the Lira's drop could damage foreign trade, Zeybekci expressed optimism that the Lira's value would rise soon following the rapid drop.

"I do not believe the Central Bank needs to increase interest rates; an interest rate hike would be a finalized step, and that would be a lasting bill on the economy," he added.

The Lira's depreciation will positively affect foreign investment, as long as Turkey's political and economic stability is secure, Zeybekci stressed.

Güncelleme Tarihi: 20 Ocak 2014, 16:09