North Cyprus consider using another currency as TL continues to fall

Turkish Cypriots are reportedly considering adopting another currency as the falling value of the Turkish lira continues to affect the country's economy.

According to Turkish Cypriot newspapers report on Wednesday, Prime minister’ Tufan Erhurman said radical measures were being considered, suggesting that one of them was using a different currency.

Euros, pound sterling and the US dollar are all accepted in north Cyprus, but the official currency is the Turkish lira which has continued to fall as investors are alarmed over the direction of monetary policy under President Tayyip Erdogan.

If we are experiencing certain problems beyond our control due to the value losses of the Turkish lira, then we need to discuss these issues openly with the Turkish Republic, and we have started to talk with them, Erhurman told a news conference on Tuesday.

He stated that the change of currency and currency hedging are among the measures that are on the table for discussion.

The Turkish lira tumbled more than 5 per cent on Wednesday before recovering some ground, the latest drop in a sell-off that reflects growing investor alarm.

The decline, exacerbated by stop-loss selling by Japanese retail investors overnight, brings the lira’s losses to more than 20 per cent so far this year and puts it on track for its worst monthly performance since the 2008 financial crisis.

Edited from Cyrus Mail