Is Turkey in 2018 similar to Thailand in 1997?

A couple of banks mentioned above that are being affected by the Lira devaluation:

France– BNP Paribas  -2.9%

Italian–UniCredit -5.8%

Spain –BBVA  -6.4%

German –DB  -5.4%

German –CS -2.8%

American –C  -2.7%

 

The Turkish Lira is down 16% just today – a truly massive move for a pretty important country.  This has dragged the Euro down -1.14%, while gold is flat (rallying strongly in Euros), and silver is off -0.85%.

I’m not sure what the knock-on effects of this currency move will be, but I’m sure it will blow someone up, somewhere.  Nobody really expects a semi-major currency to blow out like this; any institutions on the wrong side of derivatives on this currency are going to take enormous losses.

Dragging the Euro down more than 1% is an indication of just how serious this currency move is.

What happens over the weekend?  That’s the question.

 

h/t Dave