Dollar Risk at $115 Billion Looms Over Turkish Rate Cycle

Turkish companies’ record exposure to foreign-currency debt is a growing risk to the central bank as policy makers weigh deeper interest-rate cuts to spur growth.

Corporate short-term foreign-exchange debt rose 2.5 percent to $115 billion last year, the highest year-end figure since the central bank began reporting the statistics in 2002, data released Monday showed. The threat to the lira is also building as the U.S. moves closer to its first rate increase since 2006, Fitch Ratings said.