Currency of russia 2018: Turkey headed for debt default

At the heart of the swooning Turkish lira has been the loss of domestic and foreign investor confidence in the government’s ability and willingness to correct the large economic imbalances built up by years of overly easy monetary and fiscal policies. It has hardly helped investor confidence that inflation has been allowed to rise to 20%, or four times the Central Bank Of The Republic Of Turkey’s official inflation target. Nor has it helped that Erdogan has leant heavily on the central bank to refrain from raising interest rates to stem the currency’s slide and to curb inflation.

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