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Erdogan Urges Locals To Rotate To TRY Assets

TURKEY

Addressing AKP members in Ankara today, President Erdogan has argued that fluctuations in markets do not reflect economic fundamentals and has urged global investors to back Turkey's potential.

  • Erdogan also suggested that locals should convert their holdings of gold and foreign currency into Turkish assets. This last comment arguably points to the increasing difficulties that the authorities will have in stemming sustained lira depreciation.
  • With the reserve pile heavily depleted, indirect/stealth interventions via the banking sector will only offer temporary reprieve.

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