Search ForexCrunch

Turkey’s Lira has tanked by 30% this year against the dollar largely on the back of the nation’s massive current account deficit and fears of a balance of payment crisis. 

Turkey’s trade deficit narrowed to $4.8 billion in September from $6.4 billion deficit in August. However, the full-year current account deficit is still expected to rise to 4% of the gross domestic product (GDP) – one of the widest on record. 

Hence, narrowing the deficit is critical for Lira, as tweeted by Robin Brooks, Chief Economist at the Institute of International Finance (IIF).