LIRA IS UNDER PRESSURE BUT IT’S IN GOOD COMPANY

Financial Times
March 12, 2015

Sir, Daniel Dombey writes that “fundamentally political concerns” are to blame for the recent fall of the Turkish lira against the dollar (“Political concerns weigh on Turkish lira”, March 6). However, the report fails to put the lira in a broader context, leaving the impression that the downward pressure on Turkey’s currency is an isolated case. In reality, the lira is in good company among a host of global currencies that are under pressure due to a strengthening US dollar. In fact, the euro hit an 11-year low against the dollar just this week, marking a 15 per cent fall in the currency’s value against the dollar in the past six months.

Despite a euro that has fallen just as precipitously — if not more so — than the lira during the same time frame and reassurances from Turkish prime minister Ahmet Davutoglu of the central bank’s independence, observers continue to single out Turkey. Why not raise what impact the divergent policies of the ECB and US Fed are having on numerous currencies, or mention the parity in the fluctuations of the euro and the lira? It is disappointing to see the tenor of the conversation regarding the euro’s weakness versus the dollar so drastically different to that regarding the lira.

Halil Danismaz

President,

Turkish Heritage Organization,

New York, NY, US