Turkish State Lenders Sell $6 Billion to Defend Lira as Court Ousts Opposition Leadership
Updated
Updated · Bloomberg · May 21
Turkish State Lenders Sell $6 Billion to Defend Lira as Court Ousts Opposition Leadership
2 articles · Updated · Bloomberg · May 21
$6 billion in foreign exchange was sold by Turkish state lenders on Thursday to support the lira, with roughly half deployed soon after a court removed the main opposition party's leadership.
Traders familiar with the transactions said intervention was heaviest immediately after the ruling, linking the lira defense directly to the political shock.
The pace of FX sales later slowed after the initial burst, suggesting pressure on the currency eased somewhat as the session progressed.
The intervention underscores how quickly domestic political upheaval in Turkey can spill into currency markets and force state-backed support.
As political turmoil triggers massive FX sales, what is the ultimate breaking point for the Turkish economy?
Is Turkey sacrificing its economic future to manage the fallout from its domestic political battles?