The Turkish lira has steadied in recent days, but the sharp decline seen earlier this month has reinforced concerns about the risks posed by the widening current account deficit. If the government launches further stimulus to boost growth, as has been rumoured, this could cause the external shortfall to widen further, ultimately resulting in even steeper falls in the lira and possibly rate hikes.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.