{"id":199119,"date":"2018-08-13T12:37:49","date_gmt":"2018-08-13T15:37:49","guid":{"rendered":"https:\/\/anba.com.br\/?p=199119"},"modified":"2018-08-14T18:27:14","modified_gmt":"2018-08-14T20:27:14","slug":"turkish-lira-freefall-impacts-gulf-banks","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/turkish-lira-freefall-impacts-gulf-banks\/","title":{"rendered":"Turkish lira freefall impacts Gulf banks"},"content":{"rendered":"<p>S\u00e3o Paulo \u2013 Some banks in Gulf Cooperation Council (GCC) countries will be affected by the plunge of Turkey\u2019s currency, the Turkish lira, according to a survey conducted by the Dubai-based financial services firm Shuaa Capital. According to a report by the website <em>Gulf News<\/em>, many financial institutions in the region have exposure to Turkey.<\/p>\n<p>The Turkish currency has sunk over 40% this year and hit the low price of USD 7.24 this Monday (13) but pulled back after measures were announced by the local government. According to the <em>Gulf News<\/em>, Arab banks could be affected in terms of their earnings and asset quality.<\/p>\n<p>\u201cThe ongoing lira depreciation will lead to higher inflation, sluggish foreign direct investment, muted real GDP growth and higher unemployment, resulting in lower lending growth and weakening asset quality indicators for the Turkish banking system,\u201d said Aarthi Chandrasekaran, vice-president of Shuaa Capital.<\/p>\n<p>Shuaa mentioned banks from Qatar and Kuwait among those to be affected by their exposure to Turkey, with loans to Turkish subsidiaries, for instance. According to Shuaa, Turkey accounts for most of the loans done by some banks and contributes with a significant share of their earnings. However, Shuaa\u2019s vice president reminds that most of these banks are more than adequately capitalized.<\/p>\n<p>According to the <em>Gulf News<\/em>, economists say that the effects of Turkey\u2019s currency turmoil on the GCC will be limited to exposures specific to companies that have business links in the country, with a temporary impact.<\/p>\n<p><strong>Translated by S\u00e9rgio Kakitani <\/strong><\/p>\n<div class=\"credits-overlay\" data-target=\".wp-image-199112\">Yasin Akgul\/AFP<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Turkish currency plunged over 40% this year and could affect financial institutions with exposure to Turkey.<\/p>\n","protected":false},"author":2316,"featured_media":199112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[4376,4372,4375,1921,4377,4378],"class_list":{"0":"post-199119","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-aarthi-chandrasekaran","9":"tag-lira","10":"tag-shuaa-capital","11":"tag-turkey","12":"tag-turkish-currency-crisis","13":"tag-turkish-lira"},"wps_subtitle":"The Turkish currency plunged over 40% this year and could affect financial institutions with exposure to Turkey.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/199119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2316"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=199119"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/199119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/199112"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=199119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=199119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=199119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}