Narrowing Turkey's current account deficit is critical for Lira – IIF

Omkar Godbole FXStreet Contributor

Turkey's Lira has tanked by 30% this year against the dollar largely on the back of the nation's massive current account deficit and fears of a balance of payment crisis.

Turkey's trade deficit narrowed to $4.8 billion in September from $6.4 billion deficit in August. However, the full-year current account deficit is still expected to rise to 4% of the gross domestic product (GDP) – one of the widest on record.

Hence, narrowing the deficit is critical for Lira, as tweeted by Robin Brooks, Chief Economist at the Institute of International Finance (IIF).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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