Turkish lira trades at 7.15
It's very early in the FX trading week but the indications for the Turkish lira aren't good. USD/TRY is trading around 7.15, up another 11% from Friday.
Erdogan's strategy at this point appears to be pleading with regular people and companies not to pull money out of the country. But those kind of pleas only highlight a hopeless situation.
He also hinted at what might come next.
"It is industrialists' duty too to keep this nation on its feet. Otherwise we will set into motion our plan B and C," he said.
The hint there is always capital controls. The problem with that hint is that it sets of a rush to the exits before controls can be put in place (and banks closed).
However if the bank stay open, they're probably going to be crushed on foreign capital obligations.
I don't see how this ends without the IMF.
As for trading it, I'm seeing 7.10/7.34 on the bid-ask spread on one broker screen so I don't think that's the kind of spread that makes much sense.
