These EM Currencies Did Not Get The "Taper Is Priced In" Memo

Tyler Durden's picture

As equity markets around the world try valiantly to hold on to yesterday's manufactured gains that 'proved' the Taper is a good thing, few have commented on the consequences that are already being felt. Emerging Market currencies were broadly pummeled overnight with Indonesia's Rupiah tumbling to 5 years lows and the Turkish Lira collapsing 1.9% in the last 2 days (its biggest drop in 4 months) to an all-time low.


The Istanbul stock exchange is down 7.3% in the last 3 days (biggest drop in 6 months).


EM FX markets are not happy about the taper...


With the Lira breaking to a new record low against the USD (and EUR).


So when does the Turkish central bank run out of USD?


with the Turkish stock index down over 7% in the last 3 days...


Charts: Bloomberg

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LawsofPhysics's picture

Hhmmm, what if these entities want to "run out of U.S. dollars"?

hedge accordingly.

whatsinaname's picture

So are the Indians going to lower gold duties again if that diplomat lady is not released ? I dont trust their politicians. That lady is tied to a (almost) free apartment in Bombay she got thanks to her father who was a bigwig Secretary for a Housing board in her home state.

Ying-Yang's picture

But it was a Tiny Taper.... really!

(that's what she said)

nope-1004's picture

That's what these nations get by aligning themselves with the evil empire.  Global financial war being played out here.

The quicker they all work around US fed lies and manipulation, the quicker they will prosper.

USD in time will be toast.

disabledvet's picture

The Fed's "Stewie Moment" has arrived!

Popo's picture

Taper or no taper, EM's are due for a very large and very painful correction.  Global demand is down, household credit in EM's is maxed out,  and the party is coming to a close anyway.    Add to that, rising political uncertainties across emerging markets and currencies that are too high to sustain exports -- and it's pretty clear there's a bloodbath coming in EM FX. 

ZH Snob's picture

these EMs have to learn to keep up.  our beloved leaders have spiked the kool-aid.  life is good again.

alien-IQ's picture

The beatings will continue until morale improves.

Sudden Debt's picture

The Turks don't beat people... they just ask questions while you're hanged in a Palestinian way...


It's actually also the favorite of the US army where they first hose you down with cold water while you're stripped naked, than they throw you on a cold concrete floor for a day and than they hang you for a few hours and after that they start throwing you arround like a rag doll while they ask questions while playing with your testicles. It may sound pleasant and sure there's people who actually pay for that kind of sick shit but for most common people it's not fun.


disabledvet's picture

Um, we do have a world currency (see Doc's comment below) and "the USA is now turning over all the data for mass production techniques of the Aegis Class missile destroyers and cruisers to the Royal Navy" as Felix Leiter pays MI5 a visit to discuss "meta data pooling."

Dr. Engali's picture

Damn if only we had a world currency......

Dr. Engali's picture

Bitcoin is not going to be a major global currency in a world were most people can't figure out how to program their DVR.

fonestar's picture

Bitcoin's success does not depend on "most people".  If 0.01% of the world keeps buying more Bitcoin, the price goes up.  And "most people" are not as far behind technically as the citizens of the United States are.

disabledvet's picture


Duke of Earl's picture

They can't program it, but everyone owns one.

FieldingMellish's picture

The USD is moving into a bull market. MillionDollarBonus was correct.

LawsofPhysics's picture

Good for any dollar holders, well at least as long as the existing debt can be serviced and the future liabilities/budget can be funded...

orangegeek's picture

USD monthly shows that USD is still has a way to go before breaking out, but yes, USD should eventually head sharply higher


Doc E          "Damn if we only had a world currency" the words of Isaac Hayes........shut yo mouth. That has serfdom written all over it.

Dr. Engali's picture

You know that's where they are taking us. We are just one crisis away.

AvoidingTaxation's picture

Got gold? You can go everywhere with some jewellery on you, and exchange it with the local currency.

Sudden Debt's picture

Damn... I was just planning on investing in that stable country where the muslim brotherhood is gaining power...

to bad...


disabledvet's picture

How is Antwerp doing these days anyways?

virgilcaine's picture

Bitcoin looks relatively stable compared to EM's and Stawks.

semperfi's picture

I have some tulips for sale if you are interested.

fonestar's picture

Because comparing flowers to a global currency makes a lot of sense (to idiots).

semperfi's picture

yet another sucker player in the latest casino craze called 'bitcoin'

Sudden Debt's picture

I just received a mail that promisses a 25 euro discount if I buy 100 euro's of litecoins :)



disabledvet's picture

(Cue six billion dollar man theme) "we can make it better, faster, strong. We have the technology."

semperfi's picture

Awesome! The faster we fuck up other countries the faster they will drop the $US and the faster the fucking Wall St + D.C. Crime Syndicate will be relegated to the dustbin of history.

Iam Yue2's picture

There is a silver lining. Collapsing currencies will make them more competitive, whilst whacking EUR, GBP and USD exports to EMs

Dollar Bill Hiccup's picture

Don't worry. This is all de-coupled from developed markets, which are paragons of fakeness.


Anyhow, let's trot out the decouple meme again!

DOT's picture

No worries about "running out of dollars". If neccessary a few pallets of those handsome new $100s will be "unaccounted for" at Incerlik.

Iam Yue2's picture

Sssshhh, there is also the small matter of the Turkish corruption raids to consider (if one was that way inclined)....

czarangelus's picture

Doesn't make any sense that less mismanaged currencies would fall post-tapir. Is this some fancy way of the US sacrificing its periphery satraps to keep its head above water?

virgilcaine's picture

The Btc fever is still going strong!

hugovanderbubble's picture

Thanks Tyler, Have a nice Xmas Season all ZH team,