Turkish lira at new lows amid political crisis

A tourist changes foreign currency to Turkish Lira at a currency exchange office in central Istanbul. (Reuters)

The Turkish lira tumbled on Thursday to new record lows, driven in part by the ongoing political crisis in the country.

The lira hit lows of 3.1061 to the euro and 2.2909 to the dollar but then recovered slightly in mid-morning trading, AFP reported.

Turkey has been mired in controversy since a graft scandal that erupted on Dec. 17 saw the arrest of businessmen close to Prime Minister Tayyip Erdogan and three ministers’ sons.

The currency moves came as the Turkish Treasury said it made its highest-ever volume bond issue in international capital markets, Reuters reported. It borrowed $2.5 billion in a eurobond issue at a yield of 5.85 percent, marking Turkey’s first outing on a foreign market since the corruption scandal erupted.

The Treasury said the Eurobond, which drew demand of around $10 billion, meant it had completed around 50 percent of its 2014 borrowing program, according to Reuters.

(With Reuters and AFP)

Last Update: Wednesday, 20 May 2020 KSA 09:42 - GMT 06:42