One step forward, several steps back in Turkey

Source:Financial Times Date:15Oct2018

A good review of what annoys investors about Turkey’s policy direction

On Friday, a Turkish judge released Andrew Brunson, the US pastor at the centre of President Trump’s stand-off with Turkey’s President Recep Tayyip Erdogan. Brunson had spent two years in detention on charges of espionage and aiding the failed 2016 coup. News of his release did inject some optimism into Turkish assets: prices on Turkey’s 10-year government bond gained nearly 12 per cent. And at first, the currency gained nearly 3 per cent against the dollar.

Still, by close of day, the lira had surrendered most of that gain. So what gives? Before this diplomatic step forward, Turkish officials had taken several economic steps back.