Rating agencies Moody's and S&P warned Ankara on Aug. 7 that they will likely need to hike interest rates as a last-resort currency intervention policy. The Central Bank had already eroded Turkey’s foreign exchange reserves this year, said from S&P Global's Maxim Rybnikov.
The recent economic package that was prepared by the Turkish government with the contribution of employer associations is based on the assumption that the “social distancing” measures won’t last very long. Is that realistic? Possibly, but upon consideration of the extent of the pandemic and the speed at which it is spread, it seems unlikely.