On wall street predicted the consequences of the fall of the Lira

На Уолл-стрит предсказали последствия падения лиры

Some analysts admit that the devaluation of the Turkish currency will trigger a massive currency crisis.

The U.S. Bank must reassure investors that emerging markets concerned about the possibility of a chain reaction in the conditions of worsening crisis in Turkey. This is evidenced by the index of the Goldman Sachs Group, reports Bloomberg.

The dynamics of emerging market currencies, except for ruble, was less pronounced than promised indicator, despite the collapse of the Turkish Lira, the report says Goldman Sachs.

The calculation of the impact of the Lira on the currencies of other developing countries was made based on the analysis of the recent collapse of the Argentine peso.

“From a fundamental point of view of further consequences should be limited,” says the review.

“If we continue to observe these effects in the markets with the best fundamental indicators, we will likely seek investment opportunities than in the lyre,” they added.

According to CNN, analysts admit that the devaluation of the Lira will trigger a massive currency crisis. Some experts advise investors to opt out of investments in emerging markets.

Investors themselves are concerned about the fact that the government takes no action to resolve the problem. Turkey’s President has rejected a call to raise interest rates to try to ease the crisis.

Instead, Erdogan lashed out with criticism of the United States, which further aggravated the situation in the currency markets. The Turkish President urged citizens to sell dollars and euros to “save the national currency”.

Experts have warned that if the stability of the Turkish currency will not be restored in the near future, this country will not cope with the debt crisis without the help of the International monetary Fund.

The Turkish Lira since the beginning of the month fell 31% on the background of the refusal of President Recep Tayyip Erdogan to fulfill the political demands of the United States, as well as in conditions of growing tensions on the market.

The index of the currencies of major developing countries from MSCI Inc. lost 2% over the same period.

Earlier it was reported that the Euro fell to a low for the year due to the collapse of the Turkish Lira.

 

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