Turkish lira crisis: Finance minister rules out IMF and capital controls – live updates
All the day’s economic and financial news, including the latest on the Turkish currency crisis that has spooked investors
- Introduction: Turkish finance minister faces credibility test
- Berat Albayrak to speak to investors this afternoon
- Conference call at 2pm BST/4pm TRT
- Profile: Berat Albayrak: the Jared Kushner of Turkey
The Financial Times agrees that Turkey’s finance minister Albayrak faces a huge test when he speaks to investors on this afternoon’s conference call.
Some worry that Mr Albayrak and his team are simply out of their depth, having been caught off-guard by an economic and political crisis just weeks into the job.
“I have concerns that they fully comprehend the root of this problem,” said a person who has dealt with members of Mr Albayrak’s team.
Berat Albayrak’s family connections make it harder for him to establish confidence with investors.
After all, it’s possible that the best possible candidate to become finance minister is also the president’s son-in-law. But it’s not a great look.
Albayrak must convince jittery markets that Turkish monetary policy will be determined by economic reality - and an independent central bank - rather than the powerful family chief behind his meteoric rise.
Economists attributed the lira’s modest recovery on Wednesday to central bank measures which squeezed lira liquidity, raising borrowing costs without hiking the benchmark interest rate.Continue reading...