* Recovery had gained pace after 2018 currency crisisBy Jonathan Spicer and Nevzat Devranoglu
The central bank has slashed interest rates since July to kick-start lending. But by Thursday, market expectations https://tmsnrt.rs/2HFCPtg for further policy easing were reined in as investors worried that fallout from the conflict could delay the recovery. Graham's proposal would target the assets of Erdogan and other top officials, impose visa restrictions, and sanction anyone who conducted military transactions with Turkey or supported energy production.
"The more political pressure comes, the more Trump might be inclined to state that Turkish action might be off limits," added Leuchtmann. A senior Turkish banker who requested anonymity said the weakness so far reflects immediate geopolitics surrounding the incursion rather than sanctions, which loom as"the biggest threat".