Stock Trading Halted Again in Turkey As Lira Continues to Lose Value

Turkey’s main stock exchange market, Borsa İstanbul, on Monday halted trading as the lira continued to drop to a new record low.

The Lira dropped to a new record low of 18 against the dollar on Monday just after President Recep Tayyip Erdogan vowed there was “no going back” from his economic approach.

The Borsa İstanbul 100 Index fell by 5 percent after climbing as much as 3.1 percent earlier in the day, according to the bourse s statement while trading was scheduled to restart at 4: 23 p.m. Istanbul time.

Turkish stocks crashed again following Friday’s historic rout, prompting a fresh automatic market-wide trading halt after the lira slid to a record low following President Recep Tayyip Erdogan’s latest comments that he would not allow rates to rise.

Borsa plunged as much as 9.1 percent on Friday, triggering automatic circuit breakers during the second-steepest selloff of the year.

According to Tuna Cetinkaya, assistant general manager at the Info Yatirim brokerage, the call on margins resulted in a price correction turning into panic selling.

In the wake of 500 basis points of central bank rate cuts, the lira has declined 58 percent this year, making Istanbul one of the best-performing markets in 2021 in local currency terms, but the worst in US dollars.

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