IIF's chief economist: EM capital flows following lira drop are indicative of potential for contagion
|Institue of International Finance's chief economist recently crossed the news wires saying the emerging market capital flows following Turkish lira drop were indicative of a potential for contagion, as reported by Reuters.
Key quotes
- Obstacles for IMF program for Turkey are quite high as it would require higher interest rates, credit tightening.
- Fair value for TRY probably around 5-5.5 to dollar; expects strengthening over next 1-2 years
Meanwhile, according to Turkish officials, President Erdogan held a phone call with German Chancellor Merkel and agreed that their finance minister would have a meeting soon. At the moment, the USD/TRY is down 4.15% on the day at 6.0840.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.