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Turkey’s Central Bank Revamp Spurs Biggest Outflows in 15 Years

  • Foreign investors sold $1.9 billion of stocks, bonds last week
  • Local investors selling dollars softened the blow on the lira

Foreign investors sold Turkish assets at the fastest pace in 15 years last week after President Recep Tayyip Erdogan unexpectedly replaced the country’s hawkish central bank governor with a vocal critic of high interest rates.

International funds sold $1.9 billion of Turkish government bonds and stocks in the week ending March 26, the biggest outflow since May 2006, according to the latest data released Thursday. The exodus spurred an 11% decline in the lira over the same period, pushing it close to a record low.