Академический Документы
Профессиональный Документы
Культура Документы
WORLD ECONOMY
ECONOMY WORLD ECONOMY US ECONOMY THE FED CENTRAL BANKS JOBS GDP OUTLOOK
MARKETS
BUSINESS NEWS
CNBC TV
MENU
A supporter of Turkish President Recep Tayyip Erdogan waves a flag against an electronic billboard
during a rally in Kizilay Square on July 18, 2016, in Ankara, Turkey.
The free fall in the Turkish lira has stoked fears of an economic
fallout that could spill over into other emerging markets and the
banking systems in Europe.
"Turkish assets have been under severe pressure," the strategists Selfie Drone
wrote in a Friday note. "While Turkey makes up a small percentage People from Switzerland cannot believe these flight
of the global economy and financial markets, investors are worried prices
Trips Shop
about the issues in Turkey causing damage in other markets around
the world, particularly Europe." What Is Your Personality Type?
Psychology Questions
on Turkey
-Richard Briggs, CreditSights analyst
China ignores Trump
threat on Iran, says
That borrowing, which fueled consumption and spending, resulted business there will
continue
in Turkey running deficits in both its fiscal and current accounts. The
former happens when government spending exceeds revenue, while Crocs to close last of
manufacturing plants,
the latter essentially means a country buys more goods and services
but says, 'We aren't
than it sells. going anywhere'
The country's foreign currency debt now stands at more than 50 TRENDING NOW
percent of its GDP, according to estimates by the International
Monetary Fund. 1. What went wrong for
Turkey? Its economy
Implications of Turkey's debt is 'in the midst of a
perfect storm'
Turkey is not the only economy with "twin" deficits and high
amounts of foreign currency debt. Indonesia, for example, also runs
fiscal and current account deficits and its foreign currency borrowing 2. Trump's trade war
advantage: The US
is roughly 30 percent of GDP. economy is 'firing on
all cylinders,' says
But unlike Indonesia, Turkey doesn't have large enough reserves to expert
rescue the economy when things go wrong, said Richard Briggs, an
analyst from research firm CreditSights. 3. After hitting new
record low, Turkish
According to Briggs, Turkey's reserves are notably low compared to lira pares some
its $181 billion in short-term debt denominated in currencies other losses on central
bank statements
than the lira. On top of that, much of the foreign currency in Turkey
https://www.cnbc.com/2018/08/13/turkey-crisis-economy-faces-weak-lira-inflation-debt-and-tariffs.html 2/5
8/13/2018 Turkey crisis: Economy faces weak lira, inflation, debt and tariffs
is held by banks, and those funds could be withdrawn by customers, The IRS is cracking
he added. down on this small
business tax break.
That means when the lira falls, Turkey may not be able to buy up its What it means for
you
currency to prevent it from spiraling further. If that situation
worsens, the country would have to find other ways to finance its
debt, including possibly getting bailed out by the International 5. Indian rupee hits
record low, central
Monetary Fund. bank intervention
seen
Economic mismanagement
To many analysts, Turkey wouldn't have gotten into the current
predicament if its central bank had been left to do its job.
But Erdogan has said he's in favor of lower interest rates to continue
driving growth. His influence over the country's central bank has
undermined investor confidence, experts have said.
RELATED SECURITIES
https://www.cnbc.com/2018/08/13/turkey-crisis-economy-faces-weak-lira-inflation-debt-and-tariffs.html 3/5
8/13/2018 Turkey crisis: Economy faces weak lira, inflation, debt and tariffs
Symbol Price Change %Change
Jamie Dimon cautions the 10-year Treasury yield could hit 5%: 'It's a
higher probability than most people think'
His Neighbors Were Outraged at First. Now They Think He’s a Brilliant!
Fitavation.com
Corrections Internships
Careers Contact
Help
News Tips
Got a confidential news tip? We want to hear from you.
GET IN TOUCH
CNBC Newsletters
Sign up for free newsletters and get more CNBC delivered to your inbox
SIGN UP NOW
Get this delivered to your inbox, and more info about our products and services. Privacy Policy.
Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.
https://www.cnbc.com/2018/08/13/turkey-crisis-economy-faces-weak-lira-inflation-debt-and-tariffs.html 5/5