- Turkey is easing rates on the back of accelerating inflation, the opposite of conventional monetary policy.
- The local currency (Turkish lira - TRY) is down over 40% in the past month and around 70% in the past three months.
- Local corporates, especially banks, will have a tougher time to roll and place USD and EUR debt, with a significant increase in costs.
- Revenues and profitability for local corporates are going to be greatly affected by an increasingly volatile and unstable economic and currency environment.
For further details see:
TUR - Avoid Until An Orthodox Monetary Policy Prevails