Lira Retreats as Investors Look for a Plan to Help Turkey Banks
- New targets on growth, budget gap somewhat meet expectations
- Currency gave up gains of 2 percent as road map unveiled
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Turkey’s lira reversed from gains to losses against the dollar and bank shares dropped as Treasury and Finance Minister Berat Albayrak left investors waiting for more details on plans to shore up lenders in his road map to re-balance the economy.
The lira, which surged almost 2 percent after Albayrak announced lower growth and spending targets, erased gains as he skipped details on the key issue, which investors had expected him to clarify. Speculation had been building that authorities would announce a plan to help banks tackle a buildup of bad debt on their balance sheets amid a currency rout that’s knocked 40 percent off the lira’s value this year.