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05:41, 20 February 2017 Monday
10:36, 11 January 2017 Wednesday

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Speculative FX demand hurting the lira: Erdogan aide
Speculative FX demand hurting the lira: Erdogan aide

Lira's volatility comes from markets' shallowness due to need for structural reforms, and speculative moves, says advisor

World Bulletin / News Desk

 The recent demand for the U.S. dollar against the Turkish lira comes amid shallow market conditions and appear to be an overly speculative move, a top advisor to President Recep Tayyip Erdogan said Wednesday.

Speaking to Anadolu Agency, Cemil Ertem said despite the need in Turkey for structural economic reforms, this shortcoming alone does not justify such sharp volatility in foreign exchange markets, pointing the finger at speculation. 

“What are the core reasons for this phenomenon? The shallowness of Turkish markets due to the lack of structural reforms, and speculative moves,” Ertem said. 

“We see there is no substantial demand for foreign exchange currencies from our exporters. We see there is also no strong demand from public institutions. So where does this demand for foreign currencies come from?” he asked.

The demand is speculative and coming from foreign markets, he said, adding that it was spurred by the start of parliamentary debate over a package of constitutional changes to move Turkey to a presidential system. 

But Ertem said Turkey also needs to do its part in terms of structural reforms, adding that this is the only way to deepen the country’s financial markets and help prevent speculative moves from disrupting them.

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Press agenda on February 19
Press agenda on February 19

Here are the main topics World Bulletin’s English Desk plans to cover Sunday Feb. 19, 2017 (coverage may change depending on developing/breaking stories): BAGHDAD Iraqi forces launch an offensive on jihadists defending Mosul's west bank, in what could be the most brutal fighting yet in a four-month-old operation on the city. 700 words 0530 GMT by Ammar Karim and Jean-Marc Mojon US-militant-Egypt-prison,2ndlead WASHINGTON The sheikh Omar Abdel Rahman, an Egyptian-born cleric linked to the 1993 World Trade Center bombing, dies at 78 in a US prison facility after a long battle with diabetes and coronary artery disease. 650 words moved by Maggy Donaldson. File Picture Ukraine-Russia-conflict,WRAP MOSCOW A truce between government forces and pro-Russian rebels in eastern Ukraine will come into force Monday, Moscow and Kiev say, though some separatists are already labelling it unfeasible. 500 words moved by Anais Llobet Entertainment-film-festival-Germany,WRAP BERLIN Hungary's "On Body and Soul", a love story set in a slaughterhouse, wins the Golden Bear top prize at the Berlin film festival, Europe's first major cinema showcase of the year. 700 words moved by Deborah Cole. Picture. Video Also moved: Entertainment-film-festival-Germany-prizes,FACTS Entertainment-film-festival-Germany,POINTS Entertainment-film-festival-Germany-winners,CHRONO -- ASIA -- NKorea-Malaysia-diplomacy-community,SCENE KUALA LUMPUR Malaysia's only North Korean restaurant promises a glimpse into life in the reclusive state but it has been shuttered since news broke of the assassination of leader Kim Jong-Un's brother, with security guards turning customers away. 650 words 0600 GMT by Elizabeth Law. Picture. Video -- AMERICAS -- US-politics-Trump-Melania,lead MELBOURNE, Florida First Lady Melania Trump, usually a demure and soft-spoken presence at her husband's side, breaks with form, reciting the Lord's Prayer before issuing a scathing rebuke of his enemies and her critics at a campaign-style stop in Florida. 600 words moved by Michael Mathes with Stephanie Griffith in Washington. Picture. Video. US-media-politics-technology WASHINGTON As President Donald Trump warns of a crackdown on US government leaks to media, interest is growing in technology tools that allow sources to share information anonymously. 750 words moved by Rob Lever Venezuela-politics-opposition-US CARACAS Venezuela and the United States lock horns again over political prisoners held by Caracas, including over the detention of a jailed opposition leader whose supporters took to the streets of the capital to demand his release.