Erdogan's government does not stop the fall of the Turkish lira against the dollar and fears its fears in emerging markets

The Turkish lira, one of the currencies responsible for the collapse of emerging markets in 2018, continued its decline on Thursday, after the sharp devaluation of the previous session during which it had dropped by 5% compared to the previous year. dollar.

Despite the Abrupt measures of Recep Tayyip Erdogan to reverse the trend, the Turkish currency loses around 3% at 13 GMTto 5.6 units per dollar.

On Wednesday, the authorities have chosen to restrict the movement of the lira by putting pressure on banks not to give cash to foreign money managers who want to bet against the local currency, which fired at 1,000% of intraday interest rate to borrow read at the market.

"I've never seen such a movement for 21 years that I'm this marketsaid Julian Rimmer, a broker at Investec Bank Plc in London.

On Wednesday, the lira lost 7% before closing at 5% in red. In turn, the The Istanbul stock market fell by 5.67%, its biggest decline since July 2016, due to doubts about the health of the Turkish economy just days away from the municipal elections that will test the popularity of President Recep Tayyip Erdogan.

In 2018, the Turkish lira lost nearly 40% of its value, but in recent months it has stabilized between 5.9 and 6.2 pounds for one euro.

During the weekend Erdogan has threatened to "pay the high price" to those who speculate against the Turkish currency on the eve of municipal elections.

The Turkish economy has recently entered recession for the first time in ten years and inflation, fueled by the fall of the lira, has hit consumers, which could hurt the party's election expectations. ; Erdogan.

This Sunday, nearly 58 million Turkish voters are being called to the polls to elect their mayors and litigation centers from the two major cities, Istanbul and Ankara, the country's economic heartland.

(With information from EFE, Bloomberg and Reuters)