Visible hand of Erdoğan stirs Turkish debt chaos
Turkish president Recep Tayyip Erdoğan sent the country’s sovereign bond yields flying this week as he vowed to take more responsibility for monetary policy if he wins next month’s elections. His comments prompted another sharp dive in the value of the Turkish lira — felt strongly by the country’s dollar debt issuers — as investors feared that even if the central bank does hike rates to defend the currency, the measure could be soon reversed. Francesca Young and Mike Turner report.
The Turkish lira was trading at TL4.43 to the dollar on Thursday morning in London, having fallen from TL4.06 to the dollar at the start of this month.“It has been a disaster of a fortnight for Turkish bonds,” said one DCM banker in London. “The sovereign is ...
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