S&P: Turkey military push into Syria raises currency, balance of payment risks

LONDON, Oct 9 (Reuters) – Ankara’s military push into Syria raises risks for Turkey’s currency and balance of payments, S&P Global Ratings said on Wednesday, adding however that this was not expected to have an immediate impact on the country’s sovereign rating.

While Turkey’s strong tourism performance in 2018 and 2019 had shown the resilience and competitiveness of its private sector, Ankara’s latest move could impact perceptions of security which in turn could hit this key sector, S&P said.

“The potential for conflict in northeast Syria and a possible resurgence of terrorism within Turkey itself may hamper such perceptions and could impede Turkey’s comprehensive recovery in foreign currency earnings to the detriment of its employment and foreign reserve levels and exchange-rate stability,” S&P said.

S&P has an unsolicited rating on Turkey of a B+ with a stable outook.

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