The last-ditch plan to get the Turkish lira out of the abyss Subscriber content

A textbook case. Turkey is experiencing the perfect currency crisis, as described in economics textbooks. All the ingredients are there: incoherent economic policy, loss of credibility and independence of the central bank and total distrust of the markets.

The country has paid a heavy price. Inflation is soaring (more than 21% over one year in November) and increasingly reducing the purchasing power of Turks, the flight of foreign capital accelerates and the pound did not stop plunging until Monday. The indifference to its fate displayed by the government and the lack of means of the central bank to support it have suggested to the markets that the fall of the currency had no limit. All Turkish assets (stocks, real estate, etc.) are sold off and very cheap for foreigners with a risk of takeover bids (takeover bid) on the country’s economy.