The Turkish currency depreciated another 1% this week, after last week's 11% slide. It's now been falling since early March, in the longest streak of losses since 1999.
The declines have quickened following President Recep Tayyip Erdogan's re-election on May 28. In the 18 months before the vote, the central bank used up nearly $200 billion of reserves trying to bolster the currency, yet it remained one of the worst performers in emerging markets.
Erdogan has now appointed two former Wall Street bankers — Mehmet Simsek and Hafize Gaye Erkan — to run the country's finances, signaling a potential shift from heavy state intervention in favor of allowing the market to determine the currency's fair value.
Erdogan's Wall Street Guy Is Back to Replenish Wiped-Out Coffers
For many foreign investors, the lira is finding its equilibrium. Expectations are growing for capital inflows into the country's bonds and stocks to increase. Overseas investors purchased a total of $287 million of Turkish bonds and stocks last week, the biggest inflow since December, the latest central bank data showed.
The $$$ ?
Or the €€€ ?
But does that matter if Turkey stops to deal in this currencies ?
The only thing I am sure of, it is an attempt to punish Turkey for electing Erdogan, and for defecting to the BRICS side.