Speaking of EM: Lira's Abnormal Calm Belies Tug-of-War (Podcast)
Dana El Baltaji DEBaltaji
The lira typically tops the list of the world’s most volatile currencies. Not this year. It’s been wedged in a trading band for weeks, stuck in a tug-of-war between carry traders chasing yields and local investors’ incessant demand for dollars. And neither side is backing down. While the central bank’s signal that it won’t cut rates any time soon has fueled demand for lira assets from offshore funds, local households and companies’ bid for dollars in isn’t slowing.