Turkish lira falls amid renewed concerns over central bank's reserves

The Turkish lira fell by as much as 2 percent on Thursday, losing gains from the previous day, as renewed concerns over central bank reserves raised questions about the country's ability to withstand another sell-off in the market, a Reuters report showed.

The Turkish currency fell to 5.8504 lira to the dollar, its lowest level since October, excluding a brief abrupt collapse in January, by 09:49 GMT, the lira was at 5.8240 to the dollar.

The lira lost about 30 percent of its value in 2018 when the currency crisis drove the Turkish economy into recession. The Turkish currency has also fallen another 10 percent this year on fears of a growing Turkish shift to foreign currencies, the government's willingness to implement sweeping reforms, and deteriorating diplomatic ties with the United States.

The Turkish central bank has boosted its foreign exchange reserves by billions of dollars through short-term borrowing, raising fears among investors that the country is overstating its ability to protect itself in the event of a new lira crisis, the Financial Times reported on Wednesday.

Data published on Thursday showed that the net foreign currency reserves of the Central Bank of Turkey reached 162.43 billion lira ($ 28.44 billion) on April 12, witnessing a rise from 157.3 billion pounds a week ago, data showed on Thursday.

ANHA


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