The defenestration of Murat Cetinkaya could lead to a currency crisis
had just begun to show signs of recovery. High interest rates, a measure of calm following local elections earlier this year and attempts to rebuild a strained relationship with America had allowed the lira, which fell by 12% against the dollar in the first four months of the year, to strengthen. Inflation had fallen to 16%, from 25% last autumn.
The lira plunged by over 3% against the dollar when trading began on July 8th, before recovering slightly. Turkey’s stockmarket index dropped by 1.5%.
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