Merkel: Germany would like to see an economically prosperous Turkey

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Tobias SCHWARZ / AFP

Chancellor Angela Merkel said on Monday that Germany wants to see economic prosperity in Turkey and that Ankara should ensure the independence of its central bank, Reuters reported.

“No one has an interest in an economic destabilization in Turkey. But everything must be done to ensure an independent central bank,” Merkel said during a news conference in Berlin when asked about the economic situation in Turkey.

“Germany would like to see an economically prosperous Turkey. This is in our interest,” Merkel added.

The Turkish currency has lost more than 40 percent of its value against the dollar this year, largely over worries about President Recep Tayyip Erdoğan’s influence over the economy, his repeated calls for lower interest rates and worsening ties with the United States.

On Friday that relentless slide turned into a crash: The lira dropped as much as 18 percent, hitting US and European stocks as investors took fright over banks’ exposure to Turkey.

The fresh lira collapse on Sunday night hit Asian shares, weakened South Africa’s rand and drove demand in global markets for safe currencies including the dollar, Swiss franc and yen. Shares in Europe’s major banks also lost ground.

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