[ad_1]
The rating agency Fitch yesterday degraded the solvency of Turkey and noted the credit rating of the country with "BB". The recent actions of President Recep Tayyip Erdogan could undermine the independence of the Turkish central bank, Fitch justified the step in a message. The current environment would make it difficult to guarantee a "soft landing of the economy".
Inflation at age 15
In May, the rating agency S & P already had Turkey's credit rating concerned about the deterioration of its financial situation. currency that depreciates. According to Fitch, looking into the future gives little reason to hope. Inflation is 15.4% higher than that of 15 years and the Turkish lira has already lost 27% of its value this year.
Although the Turkish central bank has raised its key rate by five percentage points since April, the agency's rating of persistent inflation. Due to lack of investment from abroad, Turkey has to lend money to offset its budget deficit. However, dependence on external financiers makes the country vulnerable.
million. Erdogan recently announced that the government could play a bigger role in the country's monetary policy. Changes to the central bank's status would increase the president's influence, particularly by filling important positions, explained Fitch.
Source link
