LIRA

About: 

• The Turkish lira is the currency of Turkey and the self-declared Turkish Republic of Northern Cyprus. 
  
  
• Turkey’s ability to sustain its military campaign in Syria may depend in part on what happens in the foreign exchange market. 
  
  
• Renewed pressure on the currency and attempts to stabilise it could further endanger Turkey’s lean foreign currency reserves, leaving the country potentially with little room to defend the lira if sanctions tightened. 
  
  
• That in turn could hurt the already fragile economy and undermine President Tayyip Erdogan’s ability to stand up to international pressure against his offensive in Syria. 
  
  
• Last year, a standoff with the United States was an aggravating factor in a 30% fall in the lira, prompting an economic recession in the country which is heavily dependent on imports as well as foreign investors flows.