Baku 12° C
Baku. 3 May. REPORT.AZ/ Over the past week, a sharp change was observed in the exchange rate of the Turkish lira. US dollar rate in neighboring country rose from 4.05 to 4.1 liras.
Analytical Group of Report informs, straight after Turkish Central Bank kept its discount rate stable on last week's Wednesday, Turkish lira had strengthened.
Earlier this week, Standard & Poor's (S & P) lowered Turkey’s rating and lira lost its value again.
It is no secret that lately the Turkish government and the Central Bank have disagreements. The government sees high interest rates as a barrier to economic growth and tries to reduce the Central Bank's discount rate. The monetary policy maker is thinking about adjusting the inflation level. But it's not just Central Bank that raises the value of Turkish lira. For example, news about rescheduling presidential and parliamentary elections in Turkey from November to June. Decrease in the pre-electoral period, which creates uncertainty in the country's economy, increases the interest of investors in the country.
At the same time, the national currency fell again as a result of S & P's downgrade of Turkey’s foreign currency debt rating from "BB" to "BB-", local currency debt from "BB +" to "BB". The agency's decision was made due to the lack of macroeconomic stability in Turkey, the formation of an inflation-oriented economy and the trade balance deficit as the main problem of the Turkish economy.
