Currency Crisis

(CNN) The worst may be yet to come for Turkey.

The Turkish lira has dropped more than 40% against the dollar since January, thrashed by a potent mix of confrontational politics, economic policy confusion and US interest rate hikes. The escalation of a political spat with the United States has fueled volatility and further devalued the lira against other currencies.

Turkish citizens hoping for relief may be left disappointed.

Turkey has the hallmarks of a classic emerging market crisis: Peter Dixon https://t.co/G1eD1O6dGc @MorningsMaria @FoxBusiness

— Maria Bartiromo (@MariaBartiromo) August 13, 2018

(Zero Hedge) Following emergency bank meetings and numerous pleas by Erdogan for Turks not to “pull FX out of their banks,” blaming the country’s current economic crisis on America, the Lira has opened massively weaker – crashing below 7.00 per dollar for the first time ever…

That is the second day in a row that the lira has crashed over 75 handles!!!

As The FT reports, Recep Tayyip Erdogan accused other countries on Sunday of mounting an “operation” to bring down the Turkish economy…

“What is the cause of this storm?” he asked a gathering of ruling party officials in the Black Sea city of Trabzon. “There is no economic reason . . . It’s an operation against Turkey.”

But gave no indication he would meet investors’ demands for an emergency plan to prop up the plunging lira.