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Turkish Lira Rise 2% Over Weekend Amid Leadership Shake-Up

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Turkish Lira Rise 2% Over Weekend Amid Leadership Shake-Up

The Turkish lira rose by more than 2% against the U.S. dollar over the weekend, a departure from the usual for the country's currency in recent years. 

What Happened: Turkish Finance Minister Berat Albayrak announced his resignation on Sunday, citing health reasons. This was the second major resignation in two days. President Erdogan fired Murat Uysal, the central bank governor, offering no official explanation. Former Finance Minister Naci Agbal has replaced Uysal.

This is the second major resignation in the country in a matter of two days. President Erdogan fired Murat Uysal, the central bank governor, withouth any official explanation so far. Former Finance Minister Naci Agbal replaced Uysal.

The current finance minister decision to step down still needs to be approved by the president, Reuters reported.

Why It Matters: The Turkish Lira sank 30% this year, partly because of the coronavirus pandemic. It has been on a steady decline for about five years.

But the latest news seems to reflect positively on the national currency, prompting hopes of a rate hike to shore up the lira.

What's Next: A change in pattern could offer a trading opportunity for both the currency and the Turkish market. IShares offers a Turkey-focused ETF: iShares MSCI Turkey ETF (NASDAQ: TUR). It closed at $18.65 on Friday, on the low end of its price range over the past year.

 

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