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Turkey Warns "Speculators Will Be Burned" As Lira Collapses To Record Lows

The Turkish Lira is down over 4 handles again this morning as the currency's collapse accelerates exponentially. Having devalued by 30% year-to-date amid Erdogan's rage against central bank independence, selling its gold, threats of jail for not cutting interest rates, and rising repression of increasing social unrest, the country's Economy Minister took to the TV today to expose the "hidden currency war" and blast 'speculators' (because only a speculator would pull his capital from such a 'stable' place) - "The manipulation of those who play with the dollar will explode in their hands and their hands will be burned."

 

 

As Bloomberg reports, TGRT website publishes full remarks by Turkish Economy Minister Nihat Zeybekci in televised interview yesterday.

Zeybekci: “The manipulation of those who play with the dollar will explode in their hands and their hands will be burned”

 

Says Turkish economy can’t be evaluated on currency alone; cites improvements in bank capital ratios, public debt levels, current-account balance and tourism

 

Says “nothing to worry about” on currency and “market will solve this on its own”

 

Says there may be a “hidden currency war” going on in the world

 

"The game that’s being played now is this: "Don’t cut rates, look the lira will lose value, the exchange rate will rise"

 

Says “there’s no central bank in the world more independent” than Turkey’s

 

Says Turkish central bank’s independence not being debated: “We’re saying let’s pay attention to growth in addition to price stability. Let’s pay attention to interest rates and employment and trade balances and the current-account”

 

"Right now the central bank doesn’t have any concern with the currency market. It also doesn’t have any need to intervene"

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