Tuesday, 21 May 2019

#Turkey: Where to go when the cash runs low - Reuters

Turkey: Where to go when the cash runs low - Reuters:

Turkey is struggling to support the ailing lira, which has lost more than 40% of its value over the past two years, and with foreign currency reserves running low, investors are trying to map out Ankara’s options for turning the tide.

The $850 billion economy’s potential needs are huge. Were Turkey to descend into a full-blown crisis where it was shut out of international borrowing markets, analysts estimate Ankara would have to find between $40 billion and $90 billion to avoid some kind of sovereign default.

For many economists, this is a textbook emerging market currency crisis.

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