Currencies

Turkey’s Increasing Balance Sheet Risks


Turkey’s President, Recep Tayyip Erdogan, appears to have secured his own reelection.

He now has to find a way to avoid what appears to be an imminent financial crisis.

Turkey, of course, has enormous geopolitical importance, and President Erdogan is a master at using Turkey’s strategic position to generate emergency financing.

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Turkey

Currency Reserves

Economic Crises

Greenberg Center for Geoeconomic Studies

But Turkey’s finances were pushed to the breaking point by his efforts to juice the economy—and avoid a large fall in Turkey’s currency—prior to the election.   The post-election pivot toward orthodoxy can regenerate the reserves that were spent over the last three months.



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