Last updated: Wednesday May 06, 2020 KSA 19:30 – GMT 16:30
Posted on: Wednesday May 06, 2020 KSA 17:13 – GMT 14:13
The Turkish lira fell 1.7% to 7.18 against the US dollar, approaching an all-time low of 7.24 pounds per dollar.
The dollar-denominated Turkish government bonds fell, extending their deepest falls in more than 3 weeks and some of them fell by up to 1.8 cents by the end of a phone conference of the Turkish Finance Minister in which he tried to reassure investors, but to no avail.
The lira remained during the current month, at its weakest level since August 2018, with economic repercussions for the spread of the new Corona virus in Turkey.
In previous trading this month, the exchange rate of the Turkish lira fell to less than seven pounds against the dollar, amid increasing pressure on the economy in light of the pandemic and fears of the collapse of the tourism season.
Turkey’s foreign exchange reserves have declined since the beginning of 2020. Total reserves, including gold, have fallen more than $ 17 billion this year, to less than $ 88 billion.
Turkey has closed shopping malls, schools, restaurants and cafes to curb the increase in cases of Covid-19 disease. However, some workplaces are still open, partial orders have been imposed to stay at home, borders have largely closed and slowed down internal movement.
Trade, spending, industrialization and consumer confidence, which reached a record low this month, were confused as measures to contain the virus drove the Turkish economy toward its second decline in less than two years.
Hussein Ellis, an official at the Council of Shopping Centers, said in an interview that the planned reopening of May 11 may initially exclude cinemas, stadiums and restaurants, as it will be difficult to adhere to the rules of social separation, until the government agrees.
He added that the worst affected cities such as Istanbul, the worst area in terms of the virus outbreak in Turkey, may likely remain closed for a longer period. He explained that all the malls around the country may reopen by June.