Turkish Lira Volatility Raises Banking Sector Concerns Ahead of Bitcoin Regulations

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Speculation is hot on Turkish Lira (TRY) currently with it seeing significant volatility as it touched 8.5 to the dollar. It quickly dropped within minutes down to 8.28, bouncing off to 8.3 currently, as the currency clearly faces resistance with many bets off if it does take that 8.5. The new Central Bank Governor Sahap Kavcioglu has ruled out any interest rate increases, leading to much speculation whether interest rate cuts are on the table. Turkey’s inflation is the highest in Europe and one of the highest in the world at 16.19% with the previous chief increasing interest rates from 10% to 19%, to only see inflation rise almost in step. That has led Recep Erdogan, the elected Turkish president, to form a theory that the rise of interest rates is what causes inflation, so lowering them lowers inflation too. Past Turkish data appears to somewhat support this, but a…

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