Nordea Markets analyst Morten Lund is listing the reasons why the crisis in Turkey is now over. “Turkey is currently in a recession. Thus, the ultra-high interest rates have led to a credit crunch with classic real economy indicators such as the housing market, car sales and retail sales deteriorating. Furthermore, the spike in non-performing loans during the autumn is still surrounded by some question marks.” “Although the central bank today pointed out that its primary objective is price stability, it remains a latent risk that the CBRT could start to ease monetary policy too early.” “Both domestic and geopolitical risks lure with respectively the upcoming local election on March 31 as well as Erdogan’s warning last week to Trump about Israeli sovereignty.” “The USD is still strong. This is especially bad for the corporate sector, which has a high share of USD-denominated debt.” “FX reserves dropped in March and with the adequacy ratio already well below IMF’s recommendation (around 30%-points too low), this limits the central banks’ tools to intervene in the currency market.” “Recent PMIs from Turkey’s biggest export destination, Germany, indicate a sluggish momentum in the industrial sector and maybe a recession ahead.” “The 10Y-3M US Treasury Yield curve inverted last week, being another driver behind the current risk-off environment. An inversion of the more closely watched 10Y-2Y spread could soon follow and if history is any guidance, then the TRY will be shot to pieces.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Gold levels to watch and why it rises on recession fears Yohay Elam 4 years Nordea Markets analyst Morten Lund is listing the reasons why the crisis in Turkey is now over. "Turkey is currently in a recession. Thus, the ultra-high interest rates have led to a credit crunch with classic real economy indicators such as the housing market, car sales and retail sales deteriorating. Furthermore, the spike in non-performing loans during the autumn is still surrounded by some question marks." "Although the central bank today pointed out that its primary objective is price stability, it remains a latent risk that the CBRT could start to ease monetary policy too early." "Both domestic and… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.