According to media reports, international credit rating agency Moody’s has announced that Turkey’s economy has become more fragile to outer effects as it requires an injection of more foreign financing.
According to Moody’s, their evaluation reflects the structural current account deficit led by a lower savings rate, energy imports and the higher ratio of imported inputs in exported products. Furthermore, Turkey’s foreign exchange liabilities overbear its currency assets, Moody’s stated.
Moody’s report also warned against current political incidents including the tension with the US caused by Turkey’s S-400 purchases and Germany cautioning its citizens travelling to Turkey. Moody’s stated that, if these tensions escalate, trade and investments in Turkey might be restricted, paving the way for a devaluation of the Turkish lira.