Turkey is burning through FX reserves at an incredible level

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Like the rest of you I’m watching the inflation drama unfold but I assumed they had plenty of powder considering they haven’t enacted capital controls yet .

Did a quick Google search and it appears that it’s an absolute mess in that department. Depending on how you read the books they could be 35 Billion in the hole as of now .

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“When swaps and other liabilities such as required reserves are stripped out, Turkey’s net reserves stand at negative $35 billion.”

www.aljazeera.com/amp/economy/2021/12/1/turkeys-central-bank-sells-foreign-reserves-to-stem-lira-crash

There are a lot of other articles discussing this issue . For those who haven’t seen this dog and pony show before , Foreign capital exits little by little and then ALL AT ONCE .

The population has already lost confidence from all the on the street interviews with the little man . At this moment we can expect that connected individuals within the government and business community are converting their accounts into other currencies and transferring their funds to accounts abroad .

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Anyone want to take bets as to when capital controls fall into place ?

 

h/t barsoapguy

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