Turkish lira record low ripples through global currency markets

Peso and rand become knock-on casualties of Turkey’s currency slide after lira falls 8% against the dollar

A fresh plunge in the Turkish lira sent tremors through global currency markets on Monday, amid fears that the failure of Recep Tayyip Erdogan’s government to tackle its worsening financial crisis would have a domino effect on other vulnerable countries.

The Argentine peso and the South African rand were the biggest knock-on casualties of a day of turbulence that saw the lira fall 8% against the dollar and Erdogan lash out at “economic terrorists on social media”, as he accused Donald Trump of stabbing Turkey in the back.

Related: Turkish financial crisis: Lira hits record low as Erdoğan says ‘attacks will continue’ – live updates

Related: The Guardian view on Turkey’s currency crisis: it was made at home | Editorial

Related: Erdoğan calls on Turks to back lira by selling their dollars and euros

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Erdoğan’s high-risk path is surely leading Turkey to the IMF | Nils Pratley

Refusing standard monetary medicine means following Argentina is logical conclusion

There is not an easy way for Turkey to escape its financial crisis but three measures that might contain the coming pain would be these. First, raise interest rates to try to put a floor under the plunging lira. Second, tone down the bellicose rhetoric and certainly don’t pick new fights with the US. Third, call the International Monetary Fund.

None of those actions arrived on Monday. The central bank lowered reserve requirements for banks, which may improve liquidity in the financial system for a short period but it kept the official interest rate at 17.5%. International investors knew how to read that decision. With inflation heading rapidly towards 20%-plus, it was a signal that Turkey is still refusing standard monetary medicine.

Related: Lira crisis: action by Turkey’s central bank fails to quell contagion fears

Related: How serious is Turkey’s lira crisis and what are the implications?

Bain, you would think, would want to keep Wood in harness in some role

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Austerity, outsourcing and English councils in crisis | Letters

Thatcherite ideology, incompetence and the abolition of the Audit Commission have all contributed to local government failures, readers suggest. But there’s good news from the London borough of Haringey

Aditya Chakrabortty’s excellent piece (The councils that embraced austerity will cost us all dear, 13 August) builds on an earlier one by Patrick Butler, who pointed out in ( Opinion, 17 October 2012: “Outsourcing a local authority in its entirety is a long-held Tory municipal fantasy, first articulated by Margaret Thatcher’s local government minister Nick Ridley in the late 1980s.” Large Tory-run authorities in Cornwall, Suffolk and Barnet had “embarked on their own high-profile versions of the Ridley model, claiming that impoverishment gave them no choice but to pursue large-scale privatisation”.

However, the idea of smashing up and reshaping the public sector had its roots in Tory thinking well before Cameron and May or even the late 1980s. Ridley, appointed by Thatcher “to head a policy group on the nationalised industries” in 1975, had chaired a similar group under Ted Heath in the late 1960s which concluded that there was “a very strong case for embarking on a course of gradually dismantling the public sector”.
David Murray
Wallington, Surrey

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Gardening with the red trousers brigade | Brief letters

Interest rates | Poetry in newspapers | Minister spotting | Cat names

Some 35 years ago I was a researcher at London Business School, sharing our sole computer with the renowned (or infamous) Economic Forecasting Unit, led by Terry, later Lord, Burns, before he was appropriated by Margaret Thatcher to advise the government. I well recall the announcement (though not the reason for it) by an EFU colleague: “We will never see single interest rates again.” If there is one observation I have made since, it is that all worldly things are subject to sudden, radical upheaval (Interest rate ‘will remain low for next 20 years’, 10 August).
Philip Dowell
Bridport, Dorset

• Absolutely agree with Fr Julian Dunn (Letters, 10 August). Please bring back the Saturday poems; and reviews and articles about poetry and poets. The poetic spirit of the old Saturday Review is sorely missed.
Clare Addison

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How serious is Turkey’s lira crisis and what are the implications?

The options as the country’s economic growth displays the classic signs of overheating

Bad and getting worse by the day. Over the past five years Turkey’s growth has been virtually keeping pace with that of China and India but it is now displaying the classic signs of overheating: a large trade deficit, a construction boom and soaring debt. Financial markets have taken fright at inflation, rising at an annual rate of more than 15%, and have been selling the Turkish lira, which is down by 45% against the US dollar since the start of the year.

Related: Lira crisis: action by Turkey’s central bank fails to quell contagion fears

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Is free trade always the answer?

As Brexit talks continue, we answer the key questions on the free flow of goods

As concerns over Donald Trump’s import tariffs intensify and ministers renegotiate Britain’s trading relationship with Europe, the postwar consensus towards ever-closer economic cooperation between wealthy nations is being unpicked.

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Turkey financial crisis: lira plunges again amid contagion fears

Currency down more than 9% on Monday as investors fear financial crisis could infect European markets

The Turkish lira has fallen almost 9% in early trading on Monday as investors fear the country’s financial crisis will spread to European markets.

Despite defiant words by the Turkish president Recep Tayyip Erdoğan over the weekend pledging as yet unspecified action to reverse the slide, the currency stood at 7 lira to the US dollar at 3.30amBST on Monday, a fall of 9% on Friday’s closing price.

Related: Global markets braced for hectic trading as Turkish crisis unfolds

Related: Turkey’s crisis could widen, and its options are running out

country exposure to #Turkey debt -BIS#TurkeyCrisis pic.twitter.com/lJQBYsQepb

#EXPOSED: #Erdogan is a ‘Snake Oil Salesman’
It took 10 years to expose his #CORRUPTION#Turkishlira is a drastic fall in value against the US dollar for the second time in the week. A serious economic crisis before the country. Photo: @TSH_News#Turkey #TurkeyCrisis #Lira pic.twitter.com/t7UQflf371

Related: Crashed: How a Decade of Financial Crises Changed the World – review

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High street job losses mount with Homebase next in line for closures

Analysis by New Economics Foundation says lost jobs are a £1.5bn cost to GDP

The DIY chain Homebase is expected to reveal the closure of up to 80 stores this week as job losses from Britain’s high streets total more than 30,000.

Homebase is battling for survival amid a slowdown in the housing market as well as rising costs and increasing pressure from online rivals and discounters such as B&M.

Related: UK high street sales fall for fifth month running

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