Monday, March 09, 2015

Turkish Turmoil Sends Foreign Investors Elsewhere - Barron's

Turkish Turmoil Sends Foreign Investors Elsewhere

By Dimitra DeFotis

No more bingeing on Turkish delights.

That was Société Générale’s admonishment as it closed bullish trades on Turkey’s bonds, stocks, and currency in late February as central bank independence erodes. President Recep Tayyip Erdogan, bent on lowering borrowing costs and promoting economic growth ahead of June parliamentary elections, has suggested it would be treason if central bank chief Erdem Basci defends high interest rates.

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