S&P director says Turkish lira is ‘fundamentally undervalued’

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(PHOTO: AFP)

Turkey’s lira is fundamentally undervalued and will continue to support the country’s export sector, S&P Global Ratings said on Thursday, Reuters reported.

Speaking about possible drivers of economic growth, S&P Senior Director Frank Gill said: “Exports have performed really well, and continue to do so, including services exports and that is one bright spot in the Turkish economy … because the currency does look fundamentally undervalued.”

Turkey’s lira has weakened nearly 9 percent against the dollar since the start of the year after a 28 percent drop in 2018.

President Recep Tayyip Erdoğan repeatedly claims that the lira’s depreciation has been the result of an economic attack against the country.

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