Turkish lira back under pressure amid Moody’s downgrade
Central bank raises overnight borrowing limits; dwindling reserves could prove a challenge in the months ahead
The Turkish lira is under renewed pressure today (August 29) as a rating agency questioned the sustainability of banks’ financial positions. The central bank reacted by increasing banks’ overnight borrowing limits.
The currency lost 2.5% of its value against the dollar, falling to 6.44 in earlier trading today. It has depreciated by 70% in 2018 so far.
On Tuesday, August 28, the rating agency Moody’s downgraded 18 banks and two finance companies. “Turkish banks are highly reliant on foreign
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