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The Wall Street Journal: Turkey’s currency crisis unlikely to spread to global markets, experts say

Some buyers and economists are skeptical that Turkey’s currency crisis will continue to weigh on global markets.

Though the Turkish lira’s USDTRY, +zero.0000%   14% slide towards the U.S. dollar on Friday rippled thru global stocks and currencies, many markets recovered some early losses, a sign that Turkey’s financial woes are worse than the ones of different rising economies but contained in nature.

“Turkey has tended to be extra vulnerable,” said Torsten Slok, an economist at Deutsche Bank.

Read: three causes the selloff in Turkey’s lira issues for markets all over the world

Despite a build-up in emerging-market leverage in recent times, Turkey’s debt denominated in foreign currency echange is high relative to maximum of its peers. That exterior debt turns into dearer to pay off when Turkey’s lira slides towards the ones currencies. Its current-account deficit may be better than that of many of its peer rising markets, such as South Africa and Argentina. A high current-account deficit approach its economy requires large inflows of international cash.

An expanded version of this report seems on WSJ.com.,

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