Photo: Reuters/Murad Sezer
Some official explanations for the plunging value of the Turkish lira border on the absurd. Photo: Reuters / Murad Sezer

Turkish President Recep Erdogan’s ruling party has asked parliament to fast track legislation that would allow Turkey to deploy troops to a military base in Qatar, Reuters reports. The show of support for Doha comes after a four-country Arab coalition cut ties with the Gulf state earlier this week.

The lira fell as much as 0.9% on the news, in a sign that tensions in the region are beginning to weigh on the currency. A growing rift between Germany and Turkey regarding access to a military base in Incirlik has also drawn attention.

Bloomberg quoted Rabobank’s Piot Matys as saying that the rift with Germany is “unlikely to have prolonged negative impact on the lira unless it leads to a serious deterioration in economic relationship between the two countries – a scenario that we do not currently anticipate.”

But the move to isolate Qatar has shaken leaders in Anakara, according to Turkish English language publication Al-Monitor:

“…above all, the increasingly conspiratorial and paranoid mindset in Ankara has some worrying that Turkey may somehow be in the line of fire.

A Turkish source with access to the country’s senior leadership who asked to not be identified by name told Al-Monitor, ‘They see parallels between [former Egyptian President] Mohammed Morsi’s ouster and what’s happening to Qatar now. They see it as part of a concerted campaign orchestrated by Israel and the United States against the Muslim Brotherhood and its allies with whom they feel an ideological affinity and they are connecting the dots to the July 15 coup.’”