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Erdogan administration vowed to wage “war” against its foreign financers prior to the local elections.
By November 9 this year, the Turkish government has acted to spook foreign players on the lira markets, while providing the required liquidity via the country’s FX reserves held at the central bank and through swaps made with local banks.
Now, we see the plughole. The government remained the only FX liquidity provider on the lira markets by November 9 and it has drained the basin and it has nothing much left in the flask stashed in its back pocket.
“Nuance: Our central bank as you know has shorted both its FX cash and
18​ TURKEY Country Report​ December 2020 ​ ​www.intellinews.com