Turkey’s economic woes should be a warning for other countries
Not all emerging markets are like Turkey. But they should all beware its example
ISTANBUL’S STOCK exchange does not open until shortly before 10am, a more civilised hour than most bourses. Investors therefore had time to brace themselves on March 22nd before discovering the full cost of President Recep Tayyip Erdogan’s reckless decision to fire Turkey’s admired central-bank governor, Naci Agbal, over the preceding weekend. The selling frenzy triggered an automatic suspension of trading twice in the first 45 minutes. Combined with a deep fall in the lira, Turkey’s stocks declined by over 16% in dollar terms by the end of the day.
This article appeared in the Leaders section of the print edition under the headline “Unanchored by Ankara”
From the March 27th 2021 edition
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