Related: Interest Rate Policy After September Hike Uncertain

“Turkey’s problems are so big that they will require something very special to short-circuit the crisis,” said Jose Luis Daza, chief investment officer at QSR Capital Management.

“The crisis is, at the current stage, a foreign-exchange crisis. It will most-likely mutate into a credit crisis. Turkish corporations are heavily indebted in dollars. The central bank has the lowest level of net international reserves of all emerging markets,” Daza added. “All of these things are hitting them together.”

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