According to a US official, talks between Turkey and the United States -which were supposed to patch international relations between the two countries- have stranded, notes the research team at Rabobank.
Key Quotes
“Turkey still appears unwilling to release the American pastor that is currently placed on house arrest in the country, which raises the odds that the United States will double down on their sanctions.”
“The diplomatic spat with the US adds to the domestic challenges that plague lira-denominated assets, as the currency continues to depreciate. This morning, the score is already 1.7% on the day, with USD/TRY back around the 5.40-mark at the time of writing.”
“With a year-to-date loss of roughly 30%, this decline in the lira’s value is only adding fuel to the high inflation rate that is raging through the Turkish economy.”
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