“It will be very difficult to convince the market that this is not a one-man show,” Christian Maggio, head of emerging markets strategy at TD Securities, told the WSJ.
The sudden changes come in a time when growth in Turkey has shown signs of slowing. Furthermore, some investors are already diverting money away from the emerging markets to play higher rates in the U.S. and hedge against rising trade war concerns.
“Turkey has some of the weakest economic fundamentals of any emerging market,” Lee Hardman, a currency analyst at MUFG, told the WSJ. “That increases the vulnerabilities to a crisis.”
For more information on the Turkish markets, visit our Turkey category.