Forex Investment and Currency Trading

Turkey’s heavy external financing needs, in addition to the high level of foreign ownership of local debt and equities (30% of the debt market, 70% of equity), points to contagion from global risk aversion ahead and a weaker currency.
The Central Bank is in a difficult position. On the one hand, the economy is weak, domestically generated price pressures are limited as the output gap is negative, and real interest rates are high. On the other, inflation is set to overshoot the year end target due to external price shocks (food, oil), as well as regulated price hikes. Faced with a [...]

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