Turkish Lira Crashes 4%, Biggest Drop Since "Failed Coup" Following Visa Suspension Drama

With tensions between Turkey and the US escalating dramatically and unexpectedly in the past few days, when first Turkish police on Wednesday arrested a local employee of the US embassy in Istanbul and charged him with espionage and an attempt to overthrow the government, which was following on Sunday afternoon by the US embassy in Turkey announcing that "effective immediately" it has
"suspended all non-immigrant visa services at all U.S. diplomatic facilities in Turkey"...

... only to see a identical Turkish tit to the US tat, when the Turkish embassy in Washington tweeted that it too suspended non-immigrant visa services for U.S. Citizens, echoing almost verbatim the US statement, to wit, "Recent events have forced Turkish Government to reassess the commitment of the Government of the United States to the security of Turkish Mission facilities and personnel. In order to minimize the number of visitors to our Embassy and Consulates while this assessment proceeds, effective immediately we have suspended all non-immigrant visa service at all Turkish diplomatic facilities in the U.S."

... the market got nervous, and in early - and illiquid - FX trading, the TRY has tumbled to as low as 3.8533 per dollar, a level last seen in January, a drop of as much as 4%, the biggest slide since the fake attempted coup attempt in the summer of 2016.

This is the currency seventh consecutive decline, after dropping 0.8% Friday amid concern Fed tightening would hurt EM currencies, and should it persist may finally have an adverse impact on other EM currencies, not to mention various other local Turkish asset classes when markets reopen in a few hours.


DieselChadron GoldenDonuts Sun, 10/08/2017 - 20:30 Permalink

having an independent country with no ports while surrounded by neighbors who won't allow you to import or export anything is quite a precarious position.  Independent Kurdistan won't last long.I'll be interested to see the coming action in the Lyra.  Looks like Turkey finally chose a team - but, maybe it's not the "right" team.  :)

In reply to by GoldenDonuts

Big Brother DieselChadron Sun, 10/08/2017 - 20:48 Permalink

I was thinking the same thing. Closed on Friday at 3.612; opens at 3.722.  That's some quick cha-ching if you can front-run that.For the rest of us, on the weekly, the Tenkansen is about to cross the Kikunsen, the Chikouspan is about to break above resistance; and the pair is trading above the Kumo.Will wait for the gap to fill and then go long USDTRY (probably somewhere around 3.65).

In reply to by DieselChadron

CRM114 Sun, 10/08/2017 - 19:11 Permalink

Unexpectedly??Merkel just told Turkey they weren't getting in the EU, and withdrew German troops from Incirlik, Putin just visited to buddy up to a supposed NATO member, and you think this move is unexpected? Get out more.

CRM114 Sun, 10/08/2017 - 20:09 Permalink

Soccer on Friday:Turkey 0 - 3 Iceland.Oh boy are the Turks p!ssed! Turkish population 79 million. Most popular sport : soccerIcelandic population 330,000. Most popular sports: handball, chess, rock climbing.

Dank fur Kopf Sun, 10/08/2017 - 21:52 Permalink

If you've been following the Syrian crisis, this isn't at all surprising. Simply, this is the US attempting to punish Turkey for actions they're now undertaking, that directly impact on US/Israeli interests in the region. In short, Turkey just launched an invasion of Syria's Idlib region with the intent of eliminating all Al-Nusra (Al-Qaeda in Syria) in the region. As most of you probably already understand, whereever the Zionists go to war, Al-Qaeda sooner or latter arrives--normally right next to Zionist forces,starts committing genocide against local populations, and is completely ignored.Sequence of critical events:- A shoot down of the Russian jet was conducted by a jet launched from the US controlled air base of Incirlik.- Intitally Turkey's Erdogan, caught off-guard, took a hard stance and was supported by NATO- Then Erdogan went to Moscow and apologized.- The CIA coup in Turkey was launched, and the location Erdogan was supose to be at was attacked by military choppers just minutes after he was extracted by Russian forces.- The coup failed, and Erdogan had his forces encircle the Incirlik airbase and kill the power--putting some 80 US nuclear warheads at risk.- Following the coup, Erdogan began purging the pro-US Gulen forces from every branch of government, military, and education--one must suspect with the aid of Russian intel.- Turkey launched an offensive in Northern Syria, pushing south till they captured al-Bab, thus blocking the Zionist ambition of creating a single unified Kurdistan.- US responded by blocking weapons sales to Turkey- Turkey began purchasing weapons from Russia, including the infamous S-400.- US decided to attack Turkey's allies, as this is the typical go to strategy with an enemy that is too hard to fight directly, starting with Qatar.- Turkey made the unexpected move of reproachment with Iran, and together they both backed Qatar, leading the possibility of a conflict Saudi Arabia would lose.- Feeling used, and that the Zionist strategy in the middle-east is spiralling into chaos, Saudi Arabia recently made its own reproachment with Russia.A month ago, Al-Qaeda started an offensive in Idlib aiming to capture Russian peace keepers. The Russian response to this was close to all-in. Despite the al-Qaeda forces have US/Israeli intelligence, and numbering in the thousands, no Russian was killed or captured, and only three were injured. 800+ al-Qaeda terrorists lay dead. Russia hinted the US was involved in the planning of this attack.Last week, Islamic State forces past through a US held area in Southern Syria (within kilometers of US forces), and using very detailed intel, were able to completely avoid Syrian scout posts, to launch a sneak attack against the Sukhnah-Deir ez-Zor road, beseiging most of the settlements. This battle is still ongoing, but reports talk about several dozen of Syrian soldiers dead, and over a thousands Islamic State. Russian Ministry of Defense directly accused the US of coordinating this attack.What we can understand is that al-Qaeda and Islamic State (which are really just branches of the same entity) are completely under Zionist control, and are used at the boots on the ground in all regions US/Israeli forces operate in. They're used as plausible deniability. A terrorist force that just happens to commit genocide against all the peoples in the middle-east Israel doesn't like.Basically the middle-east is uniting to eliminate US/Israel terrorist mercenary armies. This may include the Kurds who have been committing genocides and war crimes of their own.

DaiRR Mon, 10/09/2017 - 02:26 Permalink

Erdogan's politically motivated Islamization of Turkey has destroyed the country and pushed it away from the West.  That happened because they went too long (by at least a dozen years) between military coups.   Mustafa Kemal Atatürk has been puking in his grave over this.  And the U.S. has to prostitute itself in many disgraceful ways to keep Incirlik.  It's sickening.