Anger is mounting across Cyprus a day before the banks are to reopen, as ordinary Cypriots demand that heads roll. Capital controls will be imposed and it could be months before the financial system recovers.
After several decades in which the independence of central banks was seen as essential to economic stability, the notion is being questioned again. So are central banks free spirits? And do they truly need to be?
It is in Germany's interest for Turkey to be "economically prosperous," said Chancellor Angela Merkel. But she warned this couldn't be at the expense of state interventions, as the Turkish lira continues to drop.
Investors are losing faith in former economic reformer Tayyip Erdogan. It's not ruled out that the current crisis may end badly for him, but also for economies in Europe, says DW business editor Henrik Böhme.
The central bank said it will "provide all the liquidity the banks need" as the Turkish lira continues to tumble. Prosecutors have meanwhile threatened to go after those who "threaten economic security."
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