Charting Turkey’s currency crisis
- Turkey’s credit-fuelled growth model has led to unsustainable credit growth, high inflation and external imbalances
- Covid-19 triggered a currency adjustment, with CBRT interventions draining reserves and causing market dislocations
- CBRT is tightening by the backdoor, but TRY pressure will persist while CBRT avoids rate hikes due to low credibility
This report is independent investment research as contemplated by COBS 12.2 of the FCA Handbook and is a research recommendation under COBS 12.4 of the FCA Handbook. Where it is not technically a res...