Turkey Move Does Not Solve Emerging Markets’ Problems

A massive interest-rate hike from Turkey is a decisive step to shore up its battered currency, but by no means marks the beginning of the end of troubles for beleaguered emerging markets, analysts say.

Turkey’s central bank late on Tuesday delivered a hefty 425 basis point rise in overnight lending rates to defend a crumbling lira.

Investors gave the move a clear thumbs up, with the Turkish lira bouncing. At 2.25 per dollar on Wednesday, the lira held comfortably above this week’s record low of about 2.39 per dollar.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu