Turkey: Re-pricing or Funding Crisis?

The worst selloff in emerging-market currencies in five years is beginning to reveal the extent of the fallout from the Federal Reserve’s tapering of monetary stimulus.  Compounded by political and financial instability, the Turkish Lira (TRY) depreciated to a record level of 2.39 Lira per USD on the morning of January 27^th, prompting the Central Bank of Turkey (CBT) to call an emergency monetary policy meeting.  Analysts expect CBT to announce a significant rate hike at 5:00pm EST on Tuesday January 28^th.

Out of 32 countries, Turkey is ranked 2nd in valuation, 7th in fundamentals, 31st in momentum, and 32nd in risk. In this article, we discuss the outlook for Turkish equities and the Lira.

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Issue attachment (not archived)Turkey – Re-pricing or a Funding Crisis