It has been a spectacular bad week for the Turkish lira (TRY) with the intraday decline on 10 August at one point hitting 20% against the US dollar. As the dust settled, the lira, which started the year at 3.76 per US dollar, ended the trading week at 6.43 per US dollar; a decline of 40%. Monday morning, the lira declined further to around 7.00 TRY per US dollar, approaching levels that some analysts warn constitute a breaking point for the banking sector.

 

180813 Turkey in freefall