Turkey is finding itself these days in the same boat as many other emerging economies.
Interest rates are jumping. The currency has been tanking. The economic and trade picture is deteriorating.
Central bank governor Erdem Basci gave a press conference this morning addressing some of the market weakness.
Here’s some of the Bloomberg headlines:
*BASCI: DON’T EXPECT TURKEY INTEREST RATES TO RISE
*BASCI: LIRA DEPRECIATION MAY REVERSE IN DAYS IF FIRM ON RATES
*BASCI: ‘BELIEVE IN ME AND WIN’
*BASCI: WITH SURPRISE MANEUVERS, WE ARE GOING ON THE OFFENSIVE
*BASCI SAYS GOING ON SHORT HOLIDAY WITH FAMILY ON AUG 30
So how did those lines go over?
Here’s a chart of the US Dollar against the Turkish Lira (which we ripped off from @pawelmorski)
Anyway, all of this really speaks to the crisis of the moment.
It reminds us of the Euro crisis back in 2011 and 2012, when some official would come out and try to say something soothing, and the market would immediately call their bluff.
Now it’s happening with emerging market currencies.