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(Bloomberg) – Turkey’s outlook has been revised to negative, solid through Fitch Ratings, which said that points such as depletion of foreign exchange reserves and weak credibility of the policy “exacerbated external financing risks.”
The corporate score showed Turkey’s credit score to BB-, 3 degrees below the investment score, and is on par with Brazil, Jordan and Armenia.
“There have been primary financial interventions to the lira,” Fitch said in a statement.”Exchange rate interventions have weakened policy credibility.”
Fitch cited a decrease in genuine interest rates for replacement in the outlook.
Turkey’s central bank has exhausted its foreign exchange reserves to involve falling lyre, nullifying measures that have flooded the credit market and left interest rates low in inflation, instead opting for less traditional lending accumulation strategies to tighten liquidity.Costs.
Turkey tightens politics in secret and opts for rising
The $750 billion economy is expected to contract by 4 percent this year, according to a survey of 23 economists through Bloomberg released last month. A blockade to stop the spread of Covid-19 has shut down businesses in Turkey, while the pandemic has also disrupted global lines of origin.
In a report published in July, Fitch said the fall in foreign exchange reserves added to the weak credibility of financial policy, while genuine negative interest rates increase the threat of additional external pressures.
Foreign exchange reserves fell to $45.4 billion on August 14 from $81.2 billion late last year.
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