- Turkish lira charts an oversold bounce on hopes for a big policy overhaul.
- Turkey’s Finance Minister resigns a day after the central bank governor was fired.
Turkish lira (TRY) is showing signs of life on Monday. The battered currency is currently trading at 8.3487 per US dollar, representing a 1.56% gain on the day, having hit a record low of 8.5777 on Friday.
The selling pressure around the currency has weakened following Turkish Treasury and Finance Minister Berat Albayrak’s resignation. The economic czar, who is President Erodgan’s son-in-law, resigned on Sunday, citing health reasons, according to Bloomberg citing a statement posted on his Instagram account. During his tenure, the TRY fell by over 45%.
Albayarak resigned a day after Erdogan replaced central bank Governor Murat Uysal with former Finance Minister Naci Agbal. Turkey’s President fired the central bank chief reportedly due to frustration with the use of tens of billions of dollar reserves in a failed effort to halt the sell-off in the lira.
With both the Finance Minister and the central bank chief fired, markets are likely expecting a dramatic shift in economic policy, helping the TRY regain some poise.
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