Turkish Lira Hit by Dwindling FX Reserves, Confidence

Turkey’s lira dipped to its weakest level in more than two weeks on Thursday on concerns over the country’s dwindling net reserves, with disappointment over an economic reform plan and local election uncertainty also weighing on sentiment, Reuters reported. The lira weakened 1.2 percent to 5.75 against the dollar on Thursday after the central bank’s international net reserves fell to $27.94 billion as of April 5, from $29.72 billion a week earlier. Analysts say Turks converting their savings into foreign currencies have signaled a decline of confidence in the lira. However, foreign currency deposits held by locals dipped last week from a record high to $181.13 billion. The data followed a lukewarm reaction on Wednesday to Finance Minister Berat Albayrak’s package of economic reforms, notably a plan to provide 28 billion lira ($4.9 billion) to recapitalise state banks. Read more