Long USD/TRY : Turkey Lira Weakening

27 Nis 2020

The Lira is nearing its all-time wides relative to the dollar. The Fed’s foreign CB repos and swap lines can tame the USD a bit, but they can’t save the weakest EMs like Turkey and South Africa. Some of Turkey’s largest exports are cars, trucks, and vehicle parts (the 3 are roughly 14% of exports). COVID transportation pain not going anywhere... TRY is. (weaker).