Today the Turkish lira and the Turkish financial markets suffered a final collapse after a catastrophic earthquake added to the already existing financial pressures due to a strong dollar. Reuters reports.
The uncertain geopolitical situation and the surprising inflation estimates in Turkey also play a part in this situation. The lira fell to 18.85 at the start of the day but saw the value recover throughout the day. The stock market fell 4.6% and banks were down 5%.
Follow the latest news about the earthquake in Turkey here
“The tragic events in southern Turkey are only adding to the uncertainty ahead of crucial elections in May,” said Piotr Matys, FX analyst at In Touch Capital Markets.
More than 1,400 dead
The earthquake and subsequent aftershocks have so far claimed more than 1,400 lives and injured several thousand, but that number is expected to rise significantly. The first quake measured 7.8 on the Richter scale, with an aftershock of 6.7.
Borsa Istanbul temporarily halted trading for companies based in the affected area, but added more names later in the day. Rob Govers, a geophysicist affiliated with Utrecht University, predicts the economic impact will be enormous. “An earthquake like this has never occurred before, especially in this area,” he says. “Tens of thousands of people are expected to have died or will die. The economic impact will reach into the billions.’
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
