The Talented Mr Erdogan

This week we bargain-hunt in the aftermath of Turkey’s currency plunge. Several Turkish equities offer compelling bargains.

Turkey’s currency collapsed on August 4 and 5, due to the cumulative impact of negative real Turkish interest rates, the nearly complete shutdown of Turkey’s tourist business, and a shrinking economy.

The Turkish central bank lost a third of its foreign exchange reserves this year, despite heavy foreign-currency borrowings from Turkish banks to artificially boost reserve numbers.