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Turkish Central Bank Takes Steps To Curb Currency Crisis

Updated

The Turkish lira has lost around 45 percent of its value on currency markets this year. (file photo)

Turkey's central bank says it is ready to take "all necessary measures" to ensure financial stability following a plunge in the value of the national currency.

In a statement on August 13, the central bank vowed to provide "all the liquidity the banks need."

The announcement comes a day after Finance Minister Berat Albayrak said the government had prepared an action plan to help ease market worries.

Amid fears that Turkey may be falling into an economic crisis, the Turkish lira hit record lows against the dollar and stock markets in Asia fell on August 13.

European stocks, the euro, and emerging market currencies, such as the Russian ruble, were also down.

Deteriorating relations with the United States has accelerated the fall of the Turkish lira, which has dropped some 45 percent this year.

On August 10, U.S. President Donald Trump said he had approved the doubling of tariffs on Turkish steel and aluminum, causing market turmoil.

Turkish President Recep Tayyip Erdogan said on August 13 that the United States was seeking to stab Turkey "in the back."

The two NATO members are at odds on a range of issues, including Turkey’s plan to buy Russian missile defense systems.

Most recently, Trump has demanded the release of Andrew Brunson, a U.S. pastor on trial in Turkey on terrorism charges.

Based on reporting by AP, AFP, Reuters, and the BBC
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