The Prime Minister offered no detail of how a prospective zone for the lira – which has strengthened 5% against the dollar since January after tumbling almost 20% last year – could be structured, and which countries may join, but pro-government media seized on the comments as evidence of Turkey’s rising economic power. Tub-thumping daily Sabah’s headline exclaimed it was “Just the Right Time for TL Zone,” which had “strong support” from Turkey’s business community.
Other Turkish media and political analysts however, were less than complementary about the idea.
The Milliyet newspaper called the project “crazy,” and a “fantasy,” while analysts questioned how such a project could work given the lira’s still relatively low international trading volume.
“Although I appreciate it that people have great visions for the future, I don’t think this project is realistic,” said Atilla Yesilada, political analyst at Global Source Partners, an Istanbul-based research firm.
“Theoretically, only Iraqi Kurds (in Northern Iraq) and Azerbaijan could consider joining the Lirazone, but even for them, it would be very difficult,” he said.