In an unexpected move, Standard & Poor’s cut its sovereign debt rating on Turkey further into junk territory on May 1, citing widening concern about the outlook for inflation amid a sell-off in the Turkish lira currency.
Turkey’s currency hit another record low against the dollar on the morning of May 3 after official data showed inflation rose higher than expected in April.
After the global credit rating agency S&P has downgraded the credit rating of Turkey, the Turkish Lira has depreciated by around 1.5 percent against US Dollar and Euro in one day.
President Erdoğan has said, “Some plots have been staged over economy. We have wrecked these plots and will continue to do so. I call on those who attack our economy, you will not succeed”.
President Recep Tayyip Erdoğan hit out at international investors on April 12, saying “no one could bring Turkey to heel using exchange rates,” casting the recent sharp drop in the value of the Turkish Lira as a conspiracy by outside powers.
The Turkish Central Bank’s official reserve assets dropped to $110.3 billion in March, the bank announced on April 27.