While political unrest grips the Turkish government, recent economic data shows the economy and the related exchange traded fund (ETF) could be on the mend.
Last week, Taraf, a Turkish newspaper, produced a document that showed a military colonel calling for the government to be toppled, reports Nicolas Birch for The Wall Street Journal. Chief of Staff Gen. Ilker Basbug rejected the legitimacy of this document and Turkey’s prime minister defended the country’s military chief, citing the threat of such allegations may undermine civilian and military efforts.
Since 1960, the military has ousted four elected governments and has been suspicious of the more recently formed Justice and Development Party, or AKP.
On Tuesday, Turkey’s Central Bank reduced its interest rate from 9.25% to 8.75%, which is also a new record low. A surge in consumer confidence and drop in unemployment rate prompted the Central Bank to ease money lending.
Consumer confidence is rising, but demand from Europe, the main importer of Turkish goods, is still weak. Inflation is at its lowest level in 39 years. However, the low price levels may be reversing as oil prices continue to increase.
- iShares MSCI Turkey Invest Mkt Index (TUR): up 29.3% year-to-date
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Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.