Skip to content
Subscriber Only

Record-Low Lira Wrecking Investment Case for Troubled Turkey

  • Country’s assets languish at bottom of emerging-market pile
  • Rebound in inflation ruins carry trade, appeal of bonds
General Economy As Turkey Heads For Elections And Lira Slides
Photographer: Kerem Uzel/Bloomberg
Updated on

The Turkish central bank’s repeated failure to catch up with inflation has left the country’s assets at the bottom of the emerging-market pile.

Resurgent consumer prices have revived a selloff in the lira, just when the currency was defying weakness among developing-nation peers in the wake of U.S. Treasury yields hitting the 3 percent mark. The losses are spilling over to bonds and equities, ruining the carry trade, and earning the markets some unsavory superlatives.