The currency went below TL2.095 to the dollar on Friday, the latest slide in a week marked by the US Federal Reserve’s decision to rein in monetary stimulus and the arrest in Turkey of three sons of cabinet ministers in a scandal allegedly involving millions of dollars in bribes. The lira later recovered some of the lost ground.
“[The] deepening turmoil in Turkey is not just political,” Strobe Talbott, head of the Brookings Institution, said via Twitter. “[The] stakes are geopolitical. Stable, secular, moderate state is crucial to region and world.”
Turkey is losing its margin for error. The politics and the economics are both going wrong in a country that not all that long ago was seen as a model for the Middle East.