Analysts at Rabobank suggest that an eventful year for the CEEMEA currencies is coming to an end in which the Turkish lira outperformed its peers by a very wide margin in Q4 rallying more than 14% against the US dollar.
Key Quotes
“2018 will be remembered as a year when the lira plunged to a new all-time low mainly on the back of idiosyncratic factors, including a diplomatic spat with the US and substantial market concerns about the overheated economy.”
“While the depreciation of the CEEMEA currencies in 2018 can be attributed to tightening global liquidity with the Fed raising interest rates four times, to our mind the main source of capital outflows from risky assets proved to be the trade war between the US and China.”
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