Turkey: Growing diplomatic tensions – Rabobank

According to Rabobank analysts, Turkey remains a major story in the EM space due to the ongoing military operation in northern Syria which is the source of growing diplomatic tension between Turkey and various Western allies, including the US.

Key Quotes

“Yesterday the Turkish lira briefly trimmed its month-to-date losses after the market breathed a sigh of relief that the Trump administration opted for a relatively mild sanctions on members of Turkey’s government, raising steel tariff back to 50% and putting on hold a USD 100bn trade deal.”

“However, the modest respite for the local assets proved short-lived as the selling pressure resurfaced after US prosecutors charged Turkey’s state-owned Halkbank with participating in a sophisticated and multi-billion scheme to evade US sanctions against Iran.”