Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Emerging market history shows Turkey FX crisis no conspiracy

Wednesday, July 10, 2013 - 01:39

July 11 - Turkey has burnt through almost 10% of its currency reserves to prop up the lira. But as history shows, it won’t work alone. Turkey’s situation is not unique, and tougher steps will need to be taken.

▲ Hide Transcript

View Transcript

Turkish Prime Minister -- a pentagon is making it clear who he blames for his country's problems it's a conspiracy he says but on the economic side at least. Not stand up. Turkey is not the first to matching market to run through its foreign exchange reserves to prop up a tumbling currency. We saw across Asia in 1997. And in the -- in 1999. And -- -- situation today is not unique. The talk -- Central Bank sold one point three billion dollars and ethics options on Wednesday to shorten lead up but it still fail. This -- to a record 2.2 five billion dollars thrown at the market on Monday. So far this year the Central Bank has been through six billion dollars of the country's reserves. Which are not falling bubble fought two billion. This clearly can go on other stats will have to be taken since Paul -- amount of investment that I took it down. They've had a big banking moved very substantial current account deficit which is actually quite unusual. In emerging markets these studies and of course inflation ticking now and that's sort crying now. For some action to get the economy back under control which will includes twice liquidity and at some form of -- right. Again it's OK but not be alone emerging markets around the world are taking action to stem capital flight to contain inflation. Over the past 24 hours the -- and and the media portrays interest rates by half a percentage points. And while it would be painful and could trigger a recession. Similar move from -- -- seems only a matter of time. -- -- -- -- --

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Emerging market history shows Turkey FX crisis no conspiracy

Wednesday, July 10, 2013 - 01:39