Turkey Plug Being Pulled From EM Bathtub

AFP: Turkey lira 'in freefall', eyes on central bank
Turkey's embattled lira on Wednesday lost over 3.5 percent in value to hit new historic lows against the US dollar, as markets watched to see if the central bank will take emergency action to buttress the currency.

Following sharp losses on Tuesday, the lira continued to underperform all other emerging market currencies, after suffering a hammering in Asian trade overnight when Japanese investors sold Turkish assets.
Wolf Street: Which European Bank is Most Exposed to Fallout in Turkey?
Like Spain’s biggest bank, Santander, BBVA has spent the last five years doubling down on its emerging economy bets, even as two of their biggest markets, Brazil and Turkey, have heated up politically and slowed economically.
After reaching a record high (USD 22 billion) in 2007, FDI flows to Turkey have decreased. FDI reached USD 13.3 billion in 2016 and dropped to USD 10.8 billion in 2017 according to Turkish Ministry of Economy (2018).The factors hindering FDI development include political instability (an attempted coup d'état took place in 2016 claiming many lives), the weak currency, inflation, the proximity to conflicts in the Middle East as well as administrative measures taken against the Gulenists for their alleged implication in the coup. Turkey is ranked 60th out of 190 economies by the World Bank in its Doing Business 2018 report (same ranking as in 2017).

EU member states are by the largest group of investors (67.9% of total investment in 2017) in Turkey

No comments:

Post a Comment