Turkish Assets Race to the Bottom as Erdogan Targets Rates Again
- President’s remarks add to diplomatic rows with U.S., Europe
- Brazil to South Africa look better in comparison to Turkey
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Anyone wondering whether there’s still a price to pay for political risk need look no further than Turkey.
The extra returns investors demand to buy the country’s assets are among the highest for developing nations, surpassing the premia for politically troubled peers such as Brazil, South Africa and Mexico. And the gap widened in recent days, after Turkish President Recep Tayyip Erdogan hit out at the central bank’s rate policy, reviving concern over government meddling in monetary decisions.