Turkey economy in free fall, it could bring down many banks that have loaned hundreds of billions of dollars to them

Those banks have required that their loans be repaid in US Dollars, not the Turkish lira. Since their lira is falling apart, they cannot purchase those US dollars and will default on all those loans. This has the potential to bring down the entire European economy!



The Turkish lira added to its steep losses on Friday, hitting a fresh record low, after President Donald Trump authorized the doubling of metals tariffs on Turkey.

The lira traded down 20 percent against the U.S. dollar at 6.797 after Trump made the comment in a tweet.

Volatility in Turkish lira has greater potential to cause contagion, says strategist from CNBC.

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Follow Bloomberg’s liveblog of Turkey’s response to the diplomatic (and economic) crisis, as lira plunges to a record low. Erdogan will speak followed by a news briefing from his son-in-law Finance Minister Berat Albayrak.


Lira collapses as Erdogan tells Turks: They have ‘their dollars,’ we have ‘our god’


h/t Nobody You Know


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