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Lira Traders, Burnt Eight Times, Hope 2021 Will Be Different

  • Erdogan’s economy-team revamp has spurred orthodox policy bets
  • But investors warn a U-turn could come if conditions improve
Turkish Currency And Economy As U.S. Poll Uncertainty Roils Markets
Photographer: Nicole Tung/Bloomberg
Updated on

Lira traders chastened by the currency’s almost 25% collapse this year are daring to believe 2021 will be different after President Recep Tayyip Erdogan’s surprise flip to more orthodox policies.

The nation’s latest currency crisis culminated in Erdogan’s decision to fire the central bank governor, the resignation of the president’s son-in-law as economy czar, and a hefty rate hike. The lira climbed on Wednesday after the new governor Naci Agbal said he’d tighten policy, helping pare the currency’s eighth straight year of losses. Still, investors want more evidence the switch in direction is more than just a temporary maneuver.