Turkish Lira Collapses
Amid widespread worries following the sudden capitualtion of the Turkish lira,... Asia's financial markets closed sharply lower on Monday as the shock rippled around the world.
Turkey's central bank has promised to increase cash liquidity in order to stabilize the market, but with the lira's value continuing to crash -- whether it works remains to be seen.
Kim Hyo-sun reports.
Turkey's central bank laid out measures on Monday aimed at calming the market... after the Turkish lira went into a tailspin.
It said it's ready to provide banks with all the liquidity they need.
The central bank added it will cut the lira's reserve requirement ratio,... a move that's expected to free up ten billion lira, six billion U.S. dollars and gold liquidity worth three billion dollars.
The spreading financial uncertainties caused by the tumbling lira slammed Asian markets on Monday.
Japan's Nikkei slid two percent while South Korea's KOSPI lost one-point-five percent, closing at a low not seen in 15 months.
The lira was traded at an all-time-low in the Asian market,... and it drove global demand for the safe-haven U.S. dollar and Japanese yen.
Although the lira crisis is expected to have a limited long-term impact on South Korea,... Deputy Prime Minister and Minister of Economy and Finance Kim Dong-yeon explained on Monday that Seoul is keeping a close eye on whether it spreads to other emerging economies.
He also said the government will take necessary measures to stabilize the local market if exchange volatility reaches a certain point.