We're still waiting to hear from Erdogan and finance minister Albayrak
That's the snapshot of USD/TRY currently as it trades around 5.94 to 5.97 levels. In case you missed it, Erdogan made some comments earlier in the day that were more hopeful than anything else - suggesting that he may not go hard on details to stem the rout seen in the lira.
But that was of course before the lira plunged by more than 10% on the day against the greenback.
The impact of his speech is not just going to be on the lira and Turkish assets. Further declines in the local currency will also start to see further potential spillover effects to European banks across the region (due to their credit exposure) and that will hurt equities sentiment even further and exacerbate the current risk-off mood even more.
For domestic banks' impact, Goldman Sachs and Societe Generale have highlighted a pain threshold level of 7.00 to 7.10 in USD/TRY that will eat into banks' capital buffer. Let's see if we'll have the potential to get there after Erdogan's speech.