Lira Slides After Turkey Imposes FX Transaction Tax, Rebuffs US Over S-400 Purchase

Zero Hedge | May 15, 2019 at 10:58 AM
  • After rebounding briefly back over 6.00 against the dollar earlier this week, the Turkish lira has been drifting lower again in the past few days, with the slump accelerating overnight even as most EM currencies rebounded on China stimulus hopes, after Turkey announced it would reintroduce a 0.1% tax on some foreign-currency transactions in the latest desperation move to increase budget revenue for the fiscally challenged nation.
  • Well, the average trading volume in the local foreign-exchange spot market was $3.6 billion in April, according to central bank data, and according to Isik, the government could add an estimated 200 million liras ($33 million) in monthly revenue to the budget, or about 1.5 billion liras for the remainder of the year.
  • Not helping the lira this morning, was the latest denial by Turkey that it would cancel its purchase of the S-400 Russian missile system, refuting a Bloomberg report from Monday.