13:07 - 15.07.2019

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July 15, Fineko/abc.az. International rating agency Fitch has downgraded long-term default rating of Turkey (EDR) from BB to BB-, with negative rating outlook.

Expert economist Vugar Bayramov says that Fitch links that with a probability of collision with US sanctions after the dismissal of the chairman of the Central Bank of Turkey and Turkey's purchase of S-400 anti-aircraft missile systems from Russia.

"The U.S. is expected to apply sanctions against Turkey this week. If a decision on sanctions is taken at the other end of the ocean, it could have a serious negative impact on the Turkish economy. First, after the final decision, Fitch expects decline of Turkey's investment attractiveness. And US sanctions can again provoke the fall of the Turkish lira. In case of sanctions, the demand for the US dollar in Turkey will increase again that will strengthen the economic and psychological impact on the national currency of the country," Bayramov said.