Lira at 3 to the Dollar Brings Turkey Recovery No Closer

Government optimism over weak lira may be misguided

The lira has been in free fall since Turkey’s governing AK Party said last week it had failed to form a coalition government, putting the country on course for a second general election in six months.

Political instability, combined with a surge of violence following the collapse of a three-year-old peace process with Kurdish rebels, caused investors to flee the currency, which touched a record low 3 per dollar on Thursday.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.