World Economy

Turkey Moves to Calm Investors

Turkey Moves to Calm Investors
Turkey Moves to Calm Investors

The Turkish government moved swiftly to calm investors before financial markets reopen Monday after a failed coup, with the central bank promising unlimited liquidity to banks and the deputy prime minister reaching out to international investors.

The central bank said in a statement that it would take all necessary steps to support Turkey’s financial stability. Deputy Prime Minister Mehmet Simsek said on his Twitter account that he has spoken to Central Bank Governor Murat Cetinkaya and will hold a teleconference with international investors late Sunday, Bloomberg reported.

“We’re on duty,” Simsek said. “No need to worry. Turkey is normalizing rapidly after the coup attempt was repelled by the nation. Our country’s macroeconomic foundations are solid.”

He did not specify the measures. He also said on his official Twitter account that political stability in Turkey had been strengthened after the failed coup and that macro fundamentals were solid.

Turkey’s lira plunged the most against the dollar in eight years on Friday as tanks rolled through the streets of Ankara and Istanbul, while warplanes and helicopters circled overhead. Trading in stocks and bonds had already halted for the day and is scheduled to resume on Monday.

While quashed within hours, the failed takeover threatens to destabilize an economy that depends heavily on capital inflows to finance its current-account deficit. Turkey had already become less attractive to investors because of a wave of militant violence and the resurgence of government fighting with Kurdish separatists.

President Recep Tayyip Erdogan tightened his already formidable grip with a swift crackdown on opponents in the aftermath of the coup attempt, which left over 250 people, including coup plotters, dead. Justice Minister Bekir Bozdag said Sunday that more than 6,000 people have been detained.