© Reuters. The lira loses 2% when Turkey keeps activist Kavala in prison
Istanbul, Nov 26 (.) .- The Turkish lira has lost almost 2% in an hour this Friday, after the decision of an Istanbul court to keep the Turkish businessman and philanthropist Osman Kavala in preventive detention, imprisoned without sentence, a ruling that can lead to sanctions on the Eurasian country.
After knowing the decision, the Turkish lira, which had been oscillating between values of 13.5 and 13.7 units per euro all day, began a downward path, standing at 13.9 units per euro and 12.3 per dollar, a loss close to 2%, in just one hour.
The weakness of the lira, which last Tuesday was accentuated with a fall of 11% in a single day, accumulating 20% since the beginning of the month, has given rise to heated political debates and numerous street demonstrations in recent days, in the that early elections have been requested.
Experts consider the main cause of the fragility of the currency the decision of the Central Bank to reduce interest rates to 15%, below inflation, which is close to 20%, but they also highlight that various political confrontations of Turkey with its European partners make it difficult to regain stability.
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