The Turkish lira is on the verge of a crisis that would surpass what was experienced in August-September 2018. In the first two months of 2019, official data showed that some calm had returned to Turkish markets. Inflation remained high but had stopped accelerating. The lira was depreciating, but not too aggressively considering elevated inflation. Portfolio investments were flowing into the country on a net basis. Foreign currency reserves were climbing. This calm, however, has proven to be unsustainable, with instability risks high.
One notable economic vulnerability is the country's foreign currency reserves. Official data