Turkey’s move to prop up the lira before elections hurt its credit standing: Moody’s

Turkey’s move to prop up the lira before elections hurt its credit standing: Moody’s

KEY POINTS
  • The use of reserves by Turkey’s central bank to prop up the lira — ahead of the weekend’s crucial elections  — has renewed questions on its independence, said Moody’s Ratings Agency.
  • “The fall in reserves suggests that the central bank had been intervening in the local foreign exchange market to prop up the lira ahead of municipal elections,” said Moody’s Ratings Agency in a report on Monday.
  • It rated the country’s move to erode its reserves a “credit negative” on Monday.
  • The embattled lira, which crashed to record lows last year due to domestic economy woes, fell as much as 5 percent to 5.569 against the dollar last Thursday.
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Tarih: 02.04.2019 - 09:11:39