With Turkish markets continuing to spiral downwards and the lira now in a full blown currency crisis, Paul Greer, portfolio manager at Fidelity International, discusses what might be done.
Turkish markets continue to spiral downwards with the lira now in a full blown currency crisis. Recent price action on the currency has been comparable to what Argentina experienced during Q2, which resulted in an enormous $50bn International Monetary Fund (IMF) bailout package and an outsized interest rate hike. The question many investors are asking is, why is this latest market collapse happening now? Turkey's macro challenges are numerous and well known: an overheating economy, a sizable external financing requirement, an outsized structural current account deficit, persistent...
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