Foreign investors are fleeing from Turkey

07/12/2015. | 15: 20> 15:26

http://rs.n1info.com/a115875/Biznis/Strani-investitori-beze-iz-Turske.html

Foreign investors are fleeing from Turkey

Source: REUTERS / Murad Cetinmuhurdar / Presidential Palace Press Office

Written by Tanjug
http://rs.n1info.com/topicv13/Tanjug/1

Turkish lira is faced with the biggest annual drop since 2008 and is approaching a new record low against the dollar, at a time when foreign investors largely flee from Turkey, says American agency "Bloomberg".

Foreign investors from Turkey this year withdrew funds worth 7.6 billion dollars, including 1.4 billion in November, the month in which the party of Prime Minister Recep Tayyip Erdogan of Turkey JDP managed to win the most votes in parliamentary elections.

The initial market reaction to the election results were positive but, after the escalation of tensions between Ankara and Moscow over Russia's military plane which was shot down by Turkey in Syria, investors confidence was shaken.

Russia to shot down of its aircraft responded by measures that hit the Turkish economy where it hurts most, in the tourist industry and export to Russia, states that "Bloomberg".

The large external debt makes Turkey vulnerable to a change in investor sentiment, especially in light of expectations that the US will raise interest rates, which affects the exchange rate of the lira and Turkish government bonds, economists said London-based company Capital ECONOMICS, William Jackson.

Strategist at SEB in Stockholm, Per Hamarlund, predicts that the lira will continue to fall, and that only in December weakened 3.7 percent against the dollar, the three lira to the dollar.

Jackson believes the lira by the end of 2016 is to fall as much as 11 percent, and the dollar will cost 3.25 lira.

Turkish lira in September fell to a record low of 3.0752 lira to the dollar, and then until 20 November strengthen eight percent. Due to last week's sudden weakening, however, its decline since the beginning of the year is close to 20 percent.

---

No more Turkeys soon.
Nor the caliphate. For that you would need Croatian Generals, as was long time ago.

IZAKOVIC