Turkey’s economy is in dire straits. In September, the Turkish lira fell to a 20-year low as investors withdrew billions from Turkey’s currency bond and stock market. In a scramble to keep its currency afloat, the government has blown through almost half the foreign reserves it had at the beginning of the year. With little liquidity left and its largest banks on the brink of collapse, Ankara has realized that its current strategy of fueling economic growth through cheap borrowing cannot hold.
