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Fitch Likely to Downgrade Turkey’s Credit Rating | ASHARQ AL-AWSAT English Archive 2005 -2017
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A board showing the currency exchange rates of the U.S. dollar and the Euro against Turkish lira is on display at a currency exchange office in Istanbul, Turkey, January 11, 2017. REUTERS/Murad Sezer – RTX2YFYP

Ankara- Fitch Ratings Inc. warned of the possibility to downgrade Turkish credit rating in the upcoming days, noting Turkey’s deficit in foreign currencies.

Fitch is expected to announce its report on Turkish economy on the 27th of January amidst anticipation due to current fluctuation of Turkish Lira before the U.S. dollar and the euro, not to mention the Turkish lira’s continuous depreciation since the failed coup in mid of July 2016.

The upcoming period will witness the return of the Turkish lira on the right track,” said Turkish Minister of Economy Nihat Zeybekçi, assuring that Turkey’s Central Bank has the necessary tools to intervene.

In a related matter, Moody’s downgraded credit rating of Turkey to Ba, warning of the escalation of local and geopolitical risks due to increase of terrorist attacks In Turkey.

National Standard Finance Chairman Russell Duke said they were working on a fund of USD20 billion to be transferred over the next four years. “The foreign investments will come through the planned Turkish-Gulf Fund,” he specified. “Banks’ sector is of top priority and leads the other sectors to be invested in (real estate, energy and infrastructure),” Duke added.

Duke expected the Turkish lira to achieve stability and appreciation in the long run, which will positively affect investments in Turkey.

He continued, “We expect the U.S.-Turkey relations will be further developed. Turkey’s long-term political and economic stability is of extreme importance for regional stability as well as the global economy. We want to contribute to this through direct foreign investments and corporate funding.”

Duke pointed out that his company is in pursuit of reinforcing trade relations between Turkey and the Arabian Gulf, especially Saudi Arabia.