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Turks Moving Savings to Foreign Currencies Impede Lira Rally

  • Locals added $1.9b into foreign-exchange deposits last week
  • Currency has appreciated more than 5% since July 20 record low
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Why Turkey Is a Nation Divided

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The rally that made the lira one of the biggest winners of the hunt for higher-yielding assets is coming up against a domestic hurdle: Turks are starting to boost their foreign-currency holdings.

Households and businesses in Turkey moved $1.9 billion into foreign-exchange deposits in the five days through Aug. 12, the first weekly increase since last month’s failed coup attempt, according to data from the central bank. The lira is trading near one-month highs after appreciating 5.4 percent from a record low on July 20, the most in emerging markets after the South African rand.