Top Turkish basketball team temporarily dissolves as value of lira nosedives

A top Turkish basketball team has withdrawn from the 2018-2019 season in one of the first examples of a major sports club hit by Turkey's currency crisis.

In a statement on the team’s website, Trabzonspor said they were forced to suspend their season after failing to solve their financial problems and being unable to secure a sponsor.

"Unfortunately, we were unable to overcome the burdens of heavy financial issues accumulated over the years, the effects of the global economic crisis and the rise in exchange rates," the team said.

Trabzonspor’s decision comes as Turkey grapples with a currency crisis which has caused the lira to plunge by about 40 percent against the US dollar so far this year.

In August, the lira hit a record low of 7.20 for $1 but hit its highest level in almost two months on Monday before weakening again on Tuesday.

Hailing from Turkey's Black Sea region, Trabzonspor formed in 1967 and their soccer and basketball teams have regularly challenged Istanbul rivals Fenerbahce, Galatasaray and Besiktas.

The club said they would carry out their responsibilities despite the current financial situation and vowed to return to the league as soon as they can be competitive once again.

"Our unbreakable back on the court has unfortunately been 'temporarily' broken by economic problems. However, we haven't tapped out yet," they said.

Economists have warned of a possible recession in Turkey after a 0.9 percent slowdown in the second financial quarter, compared to 1.5 percent in this year's first quarter.

Turkish President Recep Tayyip Erdogan has cast the lira crisis as an "economic war" targeting Turkey and has repeatedly urged Turks to sell their dollar savings to shore up the lira.