Commerzbank Warns Turkey Facing Hyperinflation As CDS Explodes
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
