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Mobius Warns of ‘Real Possibility’ of Capital Controls in Turkey

  • Lira has fallen around 26% against dollar so far this month
  • Mobius expecting further drops in yuan if trade war continues
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Mark Mobius discusses the crisis in Turkey.
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There’s a “real possibility” Turkey will impose capital controls to stem the plunge in the lira, which would be bad for the whole developing-nation asset class, said veteran emerging-markets investor Mark Mobius.

“If Turkey is forced to close the foreign-exchange window so that foreign investors cannot get out, that will be a very, very bad example for other emerging markets," Mobius said in a Bloomberg TV interview with Rishaad Salamat and Haidi Lun. “As you know in the past during the Asian crisis, Malaysia did that and it was was very, very bad news.”