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The major factors affecting Turkey and its currency (the Lira) are the economic sanctioning war it has entered into with the US as well as questionable economic policy which is said to not address the rampant inflation within the region. The Lira has declined in excess of 36% this year (against the USD) and inflation within the region is now being realised at 16%. Markets are concerned around possible contagion spreading from the region. BNP Paribas, BBVA and Unicredit are the three European banks which are said to have the most exposure to Turkey.
The below graph shows the BRICS (Brazil, Russia, India, China, South Africa) currencies and the Turkish Lira performances against the US Dollar over the last week.
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