Lira's Moment of Truth Arrives With Silence on Reserves Near End

The lira’s latest moment of truth increasingly hinges on the Turkish central bank’s words rather than action.

By unexpectedly dropping its explicit pledge last week to tighten monetary policy if needed, the central bank left the currency exposed to another selloff. Already the emerging world’s worst performer in April, the lira could depreciate 15 percent in the next 12 months, according to Goldman Sachs Group Inc.