Turkish lira exchange rate collapsed amid the reports of war in Karabakh
28 September , 17:18
Economy
The Turkish lira hit another historic low against the dollar, down 1% on the day. Investors fear that Turkey will be dragged into the war if the conflict over Nagorno-Karabakh escalates.

The conflict between Azerbaijan and Armenia, which resumed on the territory of Nagorno-Karabakh on September 27, had a noticeable impact on the situation on the market. A day after the start of the confrontation, the Turkish lira fell in price against the US dollar by 1% - to 7.8 lira per $ 1. This time, the reason for the fall in the Turkish currency was the military factor. Turkey is traditionally considered an ally of Azerbaijan.

“There are fears that Turkey will be drawn into a new regional conflict”, - Kommersant quoted Timothy Ash, an analyst with the British investment company BlueBay Asset Management, as saying.

On the morning of September 27, Armenia and Azerbaijan made mutual accusations against each other for carrying out shelling on the border lands. Both states imposed martial law on their territories and declared mobilization. Military losses on both sides, according to various sources, are already in the hundreds of killed and wounded. There are reports of civilian casualties. Among the dead are women and children.

According to Armenian President Armen Sarkisian, Turkey, a NATO member, is helping Azerbaijan in the war against Karabakh with advisers, mercenaries and F-16 fighters. Azerbaijan denies the charges, stating that they are conducting a "counter-offensive operation".

The confrontation in this area has been going on since the Soviet era of perestroika - since 1988, when the Nagorno-Karabakh Autonomous Region announced its secession from Azerbaijan. In the 1990s, Armenian forces occupied not only Nagorno-Karabakh itself, but also a number of neighboring regions of Azerbaijan. As a result, Karabakh and the seven regions closest to it got out of Baku's control.