On May 21 local time, Turkey’s financial markets suffered a triple blow across stocks, bonds, and currency.
The BIST 100 Index on the Istanbul Stock Exchange plunged by more than 6%, triggering a market-wide circuit breaker.
The Turkish lira fell to a record low against the U.S. dollar, with USD/TRY breaking above 45.60.
Meanwhile, Turkey’s five-year credit default swap risk premium rose to 261 basis points, indicating that investors are sharply marking up the cost of buying “default insurance” on the country.
This is a rope: one end tied to an oil tanker in the Strait of Hormuz, the other tightening inch by inch around the economic lifeline of every oil-importing country in the world.
About to be harvested by international financial capital lead by our west friend again?
Wealth is like chives: one crop grows, and another is harvested.