Investors diversify their portfolios by investing in many different assets and foreign currencies. People holding the Turkish Lira will start to liquidate that asset soon, though. The Lira remains the world’s most volatile currency, lost a whopping 11% in value since January 1st. Things are not looking all that positive for the Turkish Lira, and this trend will only continue over the coming weeks.
The year 2017 has been horrible for the Turkish Lira so far. Things went from bad to worse during the first 11 days of the new year. With a total loss in value of 11% against the US Dollar, the Lira will have a hard time recovering. In fact, it appears the current downturn is only the beginning of what is yet to come.
Turkish Lira Is In A Lot of Trouble
Making matters worse is how the promise by Turkey’s central bank to support the Lira did not calm investors’ minds by any means. To be more precise, the currency is headed for its largest five-day loss since 2008. Turkey’s instability, local turmoil, and the fact Erdogan remains the “ruler” of the country are only adding fuel to the fire.