7th August, 2020
Turkey's lira on the ropes again
The global pandemic shock has hit emerging economies hard this year, especially big tourist destinations such as Turkey that are starved of visitors and the hard currency they bring in. In the scramble to support local businesses and cut credit costs, the fragile lira - which has underperformed MSCI's emerging market currency index by 63% over the past 5 years amid policy and political concerns - plunged anew this week to record lows against the dollar after several weeks of seeming stability. The move looks to be forcing authorities to tighten credit and funding rates again in the middle of a dire recession.
Chart by Ritvik Carvalho and commentary by Mike Dolan.
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