Theories that the fate of countries are decided by bankers, rather than governments, are becoming more evident. That’s what Turkish President Recep Erdogan thinks. He accused the American banks of pushing Turkey towards a financial catastrophe.
The lira has been unstable over the past few years. Any comments on this currency immediately affect its value. One of the recent vivid examples of the lira’s vulnerability was a recommendation from JP Morgan analysts. That day, the lira fell at a faster pace than usual, and after JP Morgan forecast was released, its slump worsened. The analysts recommended that customers sell the lira, for the reason that the authorities were not interested in the stability of the lira after the elections. As a result, the Turkish government launched an investigation against the bank. Thereafter, Turkey’s financial regulator concluded that “the statement by JP Morgan analysts misled the market participants and contained signs of manipulation, which led to instability in the markets and undermined the reputation of Turkish banks.”
From the outside, it seems an attempt to find a scapegoat in order to lay the blame for the fall of the lira. But the currency's problems do not end here. JP Morgan has been replaced by another financial giant, Goldman Sachs, whose experts predict a further collapse of the Turkish currency and expect it to hit a new historical low in the coming months.