Tayyip: Turkish Lira and Emerging-Market Currencies

tayyip: The Turkish lira has nosedived in value in the past week over concerns about Turkey's President Recep Tayyip Erdogan's economic policies, according to The Toronto Star. Lefteris Pitarakis / The Associated Press The resulting flight of capital into safer and higher-yielding U.S. investments has sent many emerging-market currencies tumbling. Yet one of the threats facing Turkey and other emerging-market countries really is made-in-America By ratcheting up U.S. interest rates, the Federal Reserve has unintentionally led investors to pull money out of emerging markets like Turkey, strengthened the dollar's value and made it harder for foreign companies to repay their dollar-denominated debts. The MSCI Emerging Markets Currency Index has sunk nearly 8 per cent since early March. Turkey is Exhibit A Inflation is running near 16 per cent a year. Especially vulnerable are countries with weak economic fundamentals Runaway inflation, bulging trade deficits, piles of foreign debt and paltry foreign-currency reserves available to intervene in the markets to help prop up their own currencies. (news.financializer.com). As reported in the news.