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Turkish economic shadow looms over Europe and beyond All year long, Turkish economic delight has been in short supply. Fears of a possible currency collapse moved from a steady flow to just shy of a dam burst in recent days as the Turkish lira plunged in value against the US dollar. Although Turkish President Recep Tayyip Erdogan has been defiant about his governmentʼs response to the brewing crisis, financial markets are far from reassured. With inflation soaring alongside borrowing costs in the country, the number of major loan defaults across the heavily indebted Turkish economy is rising fast. With that comes the varied and familiar lexicon of financial crises, well-known to those with clear memories of the global financial crisis of a decade ago — contagion, "too big to fail", "systemically important", and so on.
Turkey attempts to curb currency crisis Turkeyʼs central bank on Monday announced a series of measures to address bank liquidity, marking the first major action to stem a meltdown in the lira that has threatened to morph into a fullblown financial crisis. The central banksaid in a statementthat it would "take all necessary measures to maintain financial stability" and "provide all the liquidity the banks need." The central bank specified several measures to manage lira liquidity and provide sufficient foreign currency to banks. The announcement appeared to help reverse what looked to be a currency freefall, as the Turkish lira plummeted in early trading in Asia on Monday to 7.22 against the dollar. It later pared back losses to settle around 6.85 to the dollar as of 9:30 UTC, compared to a close on Friday of 6.6. That represented a 4 percent drop.
185/2018 • 14 AUGUST, 2018
Taliban advance causes disappointment in Afghan government Afghans criticize President Ashraf Ghaniʼs administration
As battle between government troops and Taliban militants rages in the eastern city of Ghazni, Afghans criticize President Ashraf Ghaniʼs administration for having failed to protect the city and its residents. For the fourth straight day, Afghan security forceshave been fighting the Taliban in Ghazni, a key provincial capital in the east of the country. The insurgents have been attempting to seize control of the city since Friday. The Taliban launched a massive assault on the city last week, which is a strategic center on the main highway linking the capital Kabul with southern Afghanistan. Read more: Why Taliban wonʼt make peace with Kabul Heavy fighting is taking place between Afghan government forces and militants. With government buildings and police headquarters under attack, multiple accounts suggest the city is largely controlled by the Taliban. The attack is a major blow to President Ashraf Ghani and his government in the run-up to parliamentary elections, scheduled to take place in October. Situation ʼunder controlʼ Itʼs reported that Taliban fighters surprised government security forces with their attack, which has so far killed at least 100 Afghan policemen and soldiers. However, on Monday, Afghan Defense Minister Tariq Shah
Bahrami and Interior Minister Wais Barmak said the situation was under control. "We have lost a number of men, but the number of causalities on the side of our enemies is four times larger," Bahrami told reporters during a press conference. The defense ministry claims the number of civilian causalities is between 20 and 30. Around 200 Taliban, including Pakistani and Chechen fighters, were supposedly killed. Both ministers said they are hopeful security forces will regain control of the city within the next 24 hours. Read more: UNICEF: Nearly half of children in Afghanistan do not go to school Dire situation for residents But the reality on the ground appears different. The UN Office for Coordination of Humanitarian Affairs said they have received reports of people trying to reach safe areas outside the city. "Residents of Ghazni have seen their city turn into a battlefield since Friday morning, with fighting and clashes reportedly still ongoing," Dr. Rik Peeperkorn, UN Humanitarian Coordinator for Afghanistan, said in a statement.
Osama bin Ladenʼs suspected bodyguard Sami A. barred from re-entering Germany German authorities confirmed on Monday that they had issued a reentry ban against Sami A., a suspectedformer bodyguard for Osama bin Ladenwho was controversially deported from Germany to his native Tunisia last month. A spokesperson for the city of Bochum said the reentry ban was a normal procedure under European Union immigration law. Once a suspect has been deported, he or she is barred from re-entering any country within the EUʼs Schengen area. The Kölner Stadt-Anzeiger newspaper first reported that Sami A. had been listed by security authorities as an undesirable person in the Schengen Information System database.
The Turkey crisis: A threat to Europeʼs economy? Let there be no mistake — the International Monetary Fund certainly has a rescue plan for Turkey in the drawer, although no one wants to confirm this right now. The IMF also had such a plan back in 2002 when Turkey was an unstable nation, with a 40 percent inflation rate and high unemployment haunting the country. It was only through IMF loans that a state default could be prevented back then. It was also the very year when Erdoganʼs party, the AKP, rose to power. The then government under Prime Minister Tayyip Erdogan stuck to the terms and conditions the IMF loans entailed.
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