Turkish Bank could withdraw 23bn euros of reserves from France.
The Turkish Central Bank could withdraw its nearly 23bn euros of reserves from France after the EU member’s recent move to fine any denial of an Armenian ‘genocide’ in 1915, economists tell the Daily News. However, such a sharp move could risk Turkey’s EU bid, they add.
Turkey’s Central Bank might shift nearly 30 bn Turkish Liras of investment in French bonds to other European powerhouses as part of its recent row with the eurozone’s second biggest economy, according to several economists.
“The Central Bank could withdraw its reserves from France as part of its economic sanctions in the future,” Erol Katırcıoglu, professor of the economics department of Istanbul Bilgi University, said.
“Looking at the steps taken by the Turkish government and the tone of the political rhetoric, we can expect such a move,” Katırcıoglu told the Hurriyet Daily News in a phone interview. However, such a move would strengthen opponents to Turkey’s EU membership bid and denounce Turkey as an “unreliable partner.”
It is the right of Turkey to withdraw its reserves from France, according to Kerem Alkin of Istanbul Commerce University. “This might not hurt the French economy but will prove Turkey is serious about sanctions,” Alkin said.
Turkey’s Central Bank has its second highest reserves in France with 28.8bn liras, following the United States with 48.6bn liras.
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