More Trouble for the Turkey ETF

“The state of emergency declared after Turkey’s July 15 coup attempt was set to expire Oct. 19, but will be extended by 3 months, the BBC reports. Since the failed coup attempt in Turkey, nearly 13,000 police officers have been suspended, adding to a list of 100,000 Turks who have been fired, suspended or detained, the BBC reports. The reason: alleged ties to a U.S. Muslim cleric, Fethullah Gulen, who the Turkish government alleges is the mastermind behind the failed coup attempt. Gulen denies the allegations. Gulen is the nemesis — and former ally — of Turkish President Recep Tayyip Erdogan,” reports Dimitra DeFotis for Barron’s.

In August, Fitch Ratings did not downgrade the country’s sovereign credit rating after Moody’s Investors Service’s decided to delay its decision on Turkey’s credit rating. Moody’s announced that decision earlier this month. Moody’s originally put Turkey’s debt on review for a downgrade on July 18 in response to the failed coup attempt that threatened to destabilize the emerging economy.

SEE MORE: Assessing the Lone Turkey ETF as it Tries to Rebound

Also in August, Turkey’s central bank lowered interest rates by 25 basis points to 8.75% and said it stands ready to provide liquidity to the country’s banks, if needed, an important factor considering TUR’s weight to financial services stocks is almost 44%, or more than triple the ETF’s second-largest sector allocation.

For more information on the Turkish markets, visit our Turkey category.