JCR raises Turkey’s local currency

ISTANBUL - Anatolia News Agency

This photo shows swaths of Liras. JCR raised the local currency to positive.

The Japan Credit Rating Agency (JCR) yesterday affirmed Turkey’s foreign currency rating as “stable” while raising the country’s local currency rating outlook from “stable” to “positive.” 

The Turkish economy, which weathered the impact of the global financial crisis without any financial support from the International Monetary Fund, achieved a high level of economic growth from 2010 to 2011, the JCR said in a written statement.

The country’s banking sector, which has assumed an important role in financing the government’s debt, has maintained its stability despite the European debt crisis in 2011. As such, the JCR revised its outlook for the lira’s local currency rating from stable to positive. It does so, however, at a time when the economy’s dependence on external finance is potentially a concern, given the ongoing European debt crisis. 

The JCR will continue to observe the possible impact of the crisis and Turkey’s fiscal and economic performance under the growing prospect of deterioration in the world economy, the statement said.
With the economy slowing down since the third quarter of 2011, Turkey’s current account deficit was seen to be decreasing on a year-on-year basis since late 2011. Credit for the turnaround can be given to a prudent fiscal policy and flexible monetary policy aimed at managing both domestic demand and international capital flows, the JCR said.