Commerzbank Warns Turkey Facing Hyperinflation As CDS Explodes

Monday, August 13, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.com
Mon, 08/13/2018

The sheer pandemonium in Turkey continues.

It’s not just Turkey’s currency and sovereign bonds that have resumed their plunge today: Turkish stocks are all sharply lower, with the Borsa Istanbul down over 4% after dropping even more earlier in the session. However, that’s in local currency terms: in dollar terms, Turkish stocks are now at their lowest level since March 2009.

So far in 2018, the local stock market has lost a fifth of its value in lira terms, but a whopping 55% in USD terms, while banks – which Goldman recently warned would see their excess capital wiped out if the lira hits 7.1 – have fared especially bad with the BIST 100 bank sector down 7.4% on Monday, 40.7% in local currency terms for the year to date, and down a whopping 70% YTD.

“Within the current backdrop, we view banks as being vulnerable to Turkish Lira depreciation given that it impacts,” Goldman warned last week.

The Rest…HERE

Comments are closed.

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter