Turkey Crisis in Charts
11 Aug , 2018

Turkey Crisis in Charts: Worse Than Lehman.

Posted By Jassim Mohammad

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Turkey is mired in one of the worst currency routs in emerging-market history, with few signs of how it will end. The lira fell as much as 17 percent Friday, capping the biggest slump since the country’s banking crisis in 2001, and is down nearly 30 percent since President Recep Tayyip Erdogan was returned to office with sweeping new powers in late June.

Here are three charts that highlight the strains the country is facing:

As the lira melts down, the costs to trade the currency have soared. The bid-ask spread, or the difference between the price dealers are willing to buy and sell the lira at, has widened beyond the gap seen at the depth of the global financial crisis in 2008, following Lehman Brothers Holdings Inc.’s collapse. Although it hasn’t quite reached the 2015 records. The poor liquidity points to a dysfunctional market.

Source: Turkey Crisis in Charts: Worse Than Lehman, Similar to 1998 – Bloomberg

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