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How Troubled Turkish Lira May Affect Nigeria’s Naira – Researcher

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Current dollar to naira exchange rate as at Tuesday, 3rd April

Turkey’s Lira In Trouble Over, Rising Inflation, While Its President, Erdogan Blames The United States.

Turkey’s lira is in trouble as President Tayyip Erdogan has refused to consent to an increase in interest rates and tension between the European country and the US.

Also, the country’s is also in high debt while experiencing rising inflation as well

Erdogan has described his country’s economic problems as an attack while accusing US President Donald Trump of carrying out an operation against Turkey.

He also defended the country’s debt levels by noting that cheap credit is the way to fuel the economy.

Euronews reports that a construction boom in the country has left banks and companies exposed.

Meanwhile on its risk to Nigeria’s Naira, Jameel Ahmad, FTXM’s global head of currency strategy and market research, said investor appetite to emerging-market assets might be reduced.

According to him, “Global markets throughout this week are likely to remain dictated by external pressures, with this most likely being encouraged by the intense risks around the Turkish lira crisis,”

“The threat for the Nigerian naira will be that investors continue to remain ‘risk off’ during this period, with a strict reduction in trader appetite towards emerging-market assets.

“This means that emerging market currencies like the naira will be off the table for investors and we can expect for the naira to take guidance from the Lira crisis.

“If the lira continues to worry global investors the naira, like other emerging market currencies, will suffer from the risk-off environment.”

Already there has been a drop in Nigerian Stock Exchange indices. South Africa’s rand also hit a two-year low yesterday.

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