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Economist Podcasts

Swimming against the currency: Turkey

Economist Podcasts

The Economist

News & Politics, News

4.44.9K Ratings

🗓️ 21 May 2020

⏱️ 19 minutes

🧾️ Download transcript

Summary

A central bank struggling for independence, dwindling foreign reserves to prop up the currency and a president who just hates rates: Turkey’s economy looked shaky even before covid-19. Online dating carries on apace amid lockdowns, and it seems people are forging more emotionally intimate bonds. And the risk that humans might pass the coronavirus to their primate cousins.

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Transcript

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0:00.0

Hello and welcome to the Intelligence on Economist Radio.

0:07.0

I'm your host, Jason Palmer.

0:09.0

Every weekday we provide a fresh perspective on the events shaping your world.

0:17.0

As if dating wasn't hard enough, try it during a pandemic.

0:21.0

Like everything else, it's gone virtual.

0:24.0

Of course, for many, the early stages of dating already were.

0:27.0

But it seems some would-be love birds in lockdown are forging deeper, more emotionally intimate links.

0:33.0

And plenty of work has gone into finding out how the coronavirus made the jump from animals into humans.

0:39.0

But what if humans are just the next link in the chain?

0:43.0

Our primate cousins could well be at risk from the same kind of leap.

0:48.0

But first...

1:01.0

Like other countries, Turkey's economy has been badly hit by the coronavirus pandemic.

1:06.0

So, to boost growth, the country's central bankers have pursued a familiar strategy, cutting interest rates.

1:13.0

And 9th consecutive cut is expected later today.

1:16.0

That will please President Rechet Tiam Erdogan, who once called interest rates the mother of all evil.

1:23.0

But it'll also put additional pressure on the country's currency.

1:27.0

Earlier this month, the Lira fell to its lowest level ever against the dollar.

1:31.0

With Turkey bracing for its second recession in two years, the fear is that misguided monetary policy could make a fragile situation worse.

1:41.0

The Lira has, at this point, lost just over 12% of its value against the dollar so far this year.

1:49.0

Piotr Zalewski is the economist's Turkey correspondent.

1:52.0

And that is the most among big commodity-importing emerging markets.

1:56.0

And so why is the Lira having such a hard time right now?

...

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