The Financial Times observed on Jan. 10, “Turkey appears closer to a full-blown currency crisis than at any point since the ruling AK [Justice and Development] party took power in 2002. In the past three months, the lira has lost almost a fifth of its value against the dollar, as both global and domestic investors lose confidence in their country’s economic prospects.”
The data indicates Turkey will be facing an inevitable financial collapse or at least a severe economic crisis this year.
Last year, Moody’s Investors Service followed Standard & Poor’s by downgrading Turkey’s credit rating to junk, leaving Fitch Ratings as the only major agency that rates the country as investment-grade. But in its latest report, Fitch mentioned Turkey as one of the “most fragile countries against the systemic risk,” along with Venezuela and Ethiopia.