According to several investors, Turkey's economic problems were caused by the country itself and will continue to be limited to its territory. For John Floyd, however, they are a symptom of ailments that will begin to spread further to Europe in the coming months.
Turkey's economy is expected to shrink by 4% this year. The Turkish lira has lost more than 20% of its value so far this year, the second-largest drop in emerging markets and the cost of insuring Turkish sovereign debt has almost doubled. Moody’s Investors Service downgraded Turkey's credit rating deeper into speculative territory on Friday, increasing the likelihood of a balance of payments crisis.
Performance of Turkish lira/Japanese yen (Source: Tradingview.com)