Tensions in the Middle East plunged the value of the Turkish lira 1/6/2016
Tensions in the Middle East plunged the value of the Turkish lira
1/6/2016 0 Comments
Escalation of the crisis in the region may increase barriers to trade and investment and the negative impact on Turkey's struggling economy.Istanbul - Turkish lira fell Tuesday to its lowest level in three weeks on fears of the possibility that the dispute between Iran and Saudi Arabia lead on the back of the execution of Riyadh to Shi'ite cleric Nimr al-Nimr, affecting economic activities in the Middle East. The year began lira already on the decline after data showed Monday 8.81 percent rise in consumer prices in 2015, making last year the fifth year in a row experiencing a failure in achieving the inflation target.
The price of 2.9870 lira lira to the dollar Tuesday compared to 2.9691 pounds on Monday evening. The Turkish currency recorded its lowest level since December 15 / December 2015 in morning trading at 2.9915 pounds to the dollar.
And mobilized Saudi Arabia's allies in a diplomatic row Ozkah Iran's intervention in the matter after the execution of the Saudi Riyadh Shiite cleric Nimr Baqir al-Nimr, which followed all of Sudan and the example of the Kingdom of Bahrain and definitely their relations with Iran.
She said Turkey, it rejects the execution, describing it as not achieve peace and stability in the region. He called on Prime Minister Ahmed Davutoglu Tuesday Riyadh and Tehran to use diplomatic channels to resolve the issue, offering help Ankara.
Analysts said the escalating crisis in the Middle East may increase barriers to trade and investment and the negative impact on Turkey, which has already suffered economically from its proximity to the troubled region, and also by the Turkish President Recep Tayyip Erdogan and his Justice and Development Islamic conservative policy.
Said a trader in the currency markets in Istanbul on condition of anonymity, "The fear is that the problem extends between the two countries to the rest of the region ... If the situation deteriorates harmed neighboring countries such as Turkey, much of the political and economic terms through trade and investment."
And embrace the cause Ankara to groups of political Islam and its interference in the affairs of the region, in Turkey for the loss of most of the Arab markets because of it.