Keep an Eye on the Turkish Lira…

The Turkish Lira sinks to record lows as Erdogan’s re-election seems possible. Markets are preparing for a continued depreciation in the Lira as Erdogan’s economic/monetary policies of keeping the currency below inflationary rates persists. A devalued currency is unattractive for domestic corporations and foreign investors who invest in a country’s debt market due to the inability of a devalued currency owner to pay their debts. Turkey in this case amid election, are causing major impact on markets worldwide due to banks, corporations, and governments investments in Turkey with a possible default imminent.

We could see further depreciation in the Lira with increased volatility as the polls in Turkey lead them in either far right or far left.

Let‘s see how the 🎲 roll.

#turkishelections #turkishlira