LONDON, Dec 22 (Reuters) – Turkey’s radical new plan to support the lira and discourage dollarisation comes with obvious potential costs, one of Fitch’s top sovereign analysts said on Wednesday, adding time would be needed to see if it worked or not. Fitch put Turkey’s BB- rating on a downgrade warning earlier this month as a slump in the lira threatened to run out of control. read more“Clearly there is a new potential liability for the sovereign balance sheet,” he added. The average for BB- countries is 57%, South Africa’s is 71% and Brazil’s is 81%. “We really need to take stock and understand the effect of this new interest rate tool,” Gamble said.

Source: Egypt Independent December 24, 2021 22:18 UTC