The TRY Crashed Over The Course Of Several Hours

We have seen crashes like this more than once, when a country defies the world economic and political status quo.

The USD/RUB situation was similar when Russia annexed Crimea.

Yesterday the TRY lost 19% of its value over the course of mere hours when the relationship between the USA and Turkey took a nosedive due to the situation around the detainment of the American pastor Andrew Brunson. President Trump used his presidential authority to double the tariffs on steel and aluminum coming from Turkey.

And while the TRY was crashing and President Erdogan was reassuring his people and was encouraging them to exchange their savings into Turkish Lires, his son-in-law and finance minister Berat Albayrak made a statement that his country would follow a new economical approach based on a “strategic way of thinking”.

It is interesting to see whether the Turkish people, after electing a President who aims to roll back many of Kemal Atatürk’s reforms, would follow blindly the call to exchange what little is left of their financial security into the devaluated Turkish Lire.