Having initially fallen to a new low of 8.280 per dollar, the lira bounced back to finish at 7.75 per dollar by 00:00:00 GMT. The Google trends data shows that searches for bitcoin soared by 500% after Agbal found himself fired. Prior to his ouster, Agbal was credited for making the Turkish lira ‘one of the best performance emerging market currencies this year’.Bitcoin became the most searched word online a day before the Turkish lire crashed.
The Google trends data shows that searches for bitcoin soared by 500% after Agbal found himself fired. Prior to his ouster, Agbal was credited for making the Turkish lira ‘one of the best performance emerging market currencies this year’.
Agbal's policies led many satisfied overseas money managers to pour funds into the Turkish economy, according to a report. ??
It was also Agbal’s dismissal that allegedly caused a slide in the Borsa Istanbul 100 index of Turkey’s benchmark index for the Turkish dollar by 9.8% on March 22, according to a report in The New York Times. According to a report, satisfied overseas money managers had reacted to Agbal’s policies by pouring funds into the Turkish economy. Even with depreciation of the Turkish Lira, the new governor has also promised “to promote economic stability by lowering borrowing costs while bolstering growth.”
Overseas money managers had added a net of $4.6 billion to Turkish stocks and local currency bonds during Agbal’s tenure, betting that higher interest rates would help limit inflation and stabilize the lira.
In the year of writing, Turkey's interest rates stood at 19%. Additionally, the report claims that Agbal’s dismissal contributed to the loss of 9.8% in the benchmark Borsa Istanbul 100 gauge on March 22.
Depreciation of Lira
Nevertheless, the new governor has also pledged “to foster economic stability by lowering borrowing costs and bolstering growth.” According to the report, Nasdaq-listed iShares MSCI Turkey exchange-traded fund fell over 19% on U.S. trading days. In the meantime, the report explains that some investors fear Turkey will restrict their ability to sell local assets to stem the market turmoil. The Minister for Finance and Treasury, Lutfi Elvan, has issued a statement assuaging investors' fears, saying Turkey will not impose capital controls or maintain a fixed exchange rate.
The lira plunged following the appointing of a new governor, what do you think? Comment below to let us know what you think. ??
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Disclaimer: Turc currency plummeted by as much as 10% on March 22 after President Recep Tayyip Erdogan unexpectedly fired Naci Agbal, the country’s central bank governor. The lira initially dropped to a new low of 8.280 against the dollar, but recovered, closing at 7.75 by 20:00h GMT. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Bitcoin searches spiked 500% as inflation fears grew following Agbal’s ouster. Before his ouster, Agbal, who supported higher interest rates to check inflation, had helped the lira become “the best performing emerging market currency this year.”