Turkish Lira Tumbles On Soaring Unemployment, "Absolute Shitshow" Investor Meeting
Meanwhile, as Turkey faces growing headwinds both domestically, as the economy slides deeper into recession, and internationally where critical foreign capital is increasingly diverting to other emerging markets, locals are accelerating their shifting toward conducting business in hard currencies such as dollars and euros, and away from the Turkish lira.
As Michael Cornelius, an EM portfolio manager at T. Rowe Price, told Axios his biggest takeaway from the week's events was that he became more pessimistic about chances for a turnaround in Turkey.
"Not only are the fundamentals not improving, Erdogan is doing worse, investor sentiment is very, very bearish and they still have significant refinancing needs... This could be a systemic issue for emerging markets."
The silver lining: as investors once again shun Turkey, its currency still remains solidly higher than the lows it plumbed last August. The not so silver lining: this will likely not be the case for long, with the lira sliding to 6 months lows as Turkish CDS continue to blow out ever wider...