Sharp fall in Turkey’s currency, apprehension for an economic breakdown increases.

With a plunge in Lira, Turkey’s currency, the fears for an economic crises in Turkey and an impact on the other emerging markets is apprehended. The stocks in Europe and Asia have been adversely impacted as the currency fell to another record low. The main reasons for this can be the rising inflation, inefficient management of the economy and increasing tension and trade war between the United States of America and Turkey. Investors are mainly driven by the fear of a ‘contagion’ and it has been seen that this problem in Turkey has been building up since years but the assets have fallen steeply in the last few days. The increasing value of the dollar has been a cause of serious problem for officials in China and other countries. Clearly the present situation shows that Turkey is no exception, rather has strengthened the dollar even further.

For more details, readers click here.

This post has been authored by Anushna Mishra, a  Second Year  student of West Bengal National University of Juridical Science.