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Flashpoints That May Heal or Deepen the Lira’s Pain in 2022

  • Currency lost half its value after 500 basis points of cuts
  • Traders weigh a reversal by central bank, potential elections
Turkish Economy as Lira Leads Currency Gains Amid Tourism Boost
Photographer: Moe Zoyari/Bloomberg
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What will it take to halt the Turkish lira’s slide?

That’s the question investors are asking as they head into 2022 pondering the outlook for the worst-performing currency in emerging markets this year. Even Thursday’s pledge by the central bank to pause interest-rate reductions failed to stem the lira’s slide amid President Recep Tayyip Erdogan’s renewed pledge to continue with cuts.