interest rate cut
For a long time, Ankara had eroded foreign currency reserves worth near 100 billion to hold the rate. Now, it has come to the end of the road. It has spent its last penny and left the rate to the markets. Thus, the “unheard of” invented exchange rate regime has collapsed.
Turkey has room for further fiscal stimulus to combat the economic impact of the coronavirus outbreak as its response so far has been “pretty moderate” compared with other countries in similar positions, a Fitch Ratings executive said on April 23. The steps announced by the Turkish government so far are equivalent to around 2% of GDP, he added.