Bloomberg, based in the US, reported that confidence in Turkey on Wall Street, one of the world’s largest stock exchanges, was shaken within 30 minutes.
On March 19, following a crucial meeting in Istanbul, Bloomberg wrote about how Wall Street’s confidence in Turkey was undermined. Investors, who were expecting positive messages about the country’s economic stability, were shocked when the developments that popped up on their phone screens disrupted the markets.
Bloomberg, reporting on the reaction of a group brought together by Deutsche Bank AG, including clients such as Millennium Partners and Gramercy Funds Management, wrote that the group had been stunned by the news and “couldn’t take their eyes off their phone screens.”
“Within about half an hour, investors around the world sold large amounts of lira, causing the currency to drop by 10%, a record decline. A market participant from one of Wall Street’s biggest banks estimated that by 9 AM in London, around $5 billion worth of currency had changed hands, about ten times the morning average. Another participant suggested that the total outflows for the day were close to $10 billion,” Bloomberg continued.
Turkish banking stocks experienced their sharpest drop since 2013, and Bloomberg noted, “This was a major blow for Turkish financial authorities, who have been taking steps to ensure economic stability over the past two years. That chaotic half hour wiped out all those efforts.”
