If the pressure on the currency and financial markets of Turkey continued to intensifythe risk of introducing additional capital control is growing, said the credit rating company S&P Global, quoted by AP.
The Turkish lira has depreciated by 22% this year, raising fears that the country could turn to a repeat of the currency crisis since late last year.
Turkish lira depreciates by nearly 3%
Her earnings from the day before had been erased
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One of S&P’s leading sovereign analysts, Maxim Ribnikov, said in an online presentation that S&P’s decision in April to downgraded Turkey’s local currency rating has also reflected concerns about additional capital controls.
“This is not the main line yet, but I think the risk is increasing,” Ribnikov said.
Another S&P analyst added that the falling pound meant that problems with the quality of assets in Turkey’s banking sector would eventually “pop up”, while the pace of tourism recovery was one of the few positive surprises.
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