Turkish currency lira is declining in price Economic concern Concerns New Corona May 8 9:19
In Turkey, as the economy was hit by the spread of the new coronavirus, the price of the currency lira declined, and on the 7th, the lowest price at the time of the currency crisis, which was also known as the "lira shock", was temporarily set. It has fallen below.
Emerging countries are facing their own currency depreciation, and there are concerns about their economic impact.
Turkey has the highest number of people infected with the new coronavirus, 133,721, which is the eighth largest in the world, and the government has significantly restricted citizens' going out and commercial activities to prevent the spread of the infection. However, as the number of new infected people per day began to decrease, we will gradually relax the restrictions from this month.
On the other hand, however, the movement to sell the currency lira continued in the foreign exchange market, and the price temporarily dropped to the lower half of the lira = 7 lira level on the 7th, and it was also called the "lira shock" during the declining currency crisis. It has fallen below the lowest price. This is 18% cheaper than at the beginning of the year.
Under such circumstances, the central bank that supports lira is reported to be negotiating for a deal called a "swap" that exchanges currencies with central banks such as the United States, as foreign currency reserves are decreasing. I am.
In emerging economies, Russia and Brazil are also facing currency depreciation, and there are concerns about their impact on the economy.