Turkish lira sinks to new low as investors warn of ‘vicious cycle’

Source:Financial Times Date:20Nov2021

Investors said there was little prospect of a lasting recovery for the lira unless the central bank could somehow free itself from Erdogan’s unorthodox belief that high interest rates fuelled, rather than tamed, inflation. “As an investor, when you see a blow-up in a currency it’s always tempting to take the other side,” said Viktor Szabo, a portfolio manager at Aberdeen Standard Investments. “But in this case it’s not worth it. If you had some certainty policy was going to change then maybe, but there’s no sign of that.”

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