This morning we first reported a noticeable, but still bearable devaluation for the Turkish Lira. The reason was Turkey’s invasion of northern Syria, which is imminent, because the USA has clearly signalled that it is making room for Turkey. And now? The Turkish Lira continues to lose against the US Dollar.
Turkish Lira falls significantly
US Dollar vs Turkish Lira has risen from Sunday evening to now from 5.71 to 5.83. So we are now dealing with a significant depreciation of the Lira. It has reached its lowest level since the flash crash in August. What happened? Two hours ago Donald Trump shot a cannon via Twitter against Turkey. He would “economically destroy” the country (threat of sanctions? Or what else?).
Trump with violent verbal attack
And then Donald Trump doesn’t know how to stop. As he said before, and only to repeat it. If Turkey does anything he considers exaggerated in his great and unsurpassed wisdom, he will totally destroy Turkey’s economy (which he has done before). So sanctions after all, but really? Oh yes, and since the USA is withdrawing from the regions, according to Trump, Turks and Europeans should now take care of the captured IS fighters and their families, he twitters.
Well, but what is the reason for the attack on Turkey? Suspicion: The USA withdraws, but wants Turkey to touch the Kurds in Northern Syria with velvet gloves. The USA fought the IS with the Kurds for years. So does Trump want to save the face of the USA by not letting his allies down ice cold? So to speak a verbal threat against the Turks? March in, yes, but don’t take aggressive action against the Kurds there? That would be squaring the circle. What a bluster by Trump. The Turkish Lira gets to feel this tweet now brutally.