After 16 years in power, the appointment of an ally as finance minister became the ultimate move by a president gaining an increasingly firm grip on the economy. No, I am not referring to any economy from our continent — even though parts of this script have a very familiar ring to them. Cadre deployment, a schizophrenic currency and lack of economic discipline are not flaws unique to our part of the globe. Turkey’s lira has fallen by almost a third in the past few weeks, triggered by that man again, Donald Trump, who took umbrage at the imprisonment of a US pastor. Authoritarianism, poorly thought-out economic policies and disastrous international relations have concocted a lethal cocktail threatening to engulf Turkey in serious economic turmoil. With one of the highest current account deficits among emerging markets and a corporate sector heavily reliant on hard-currency foreign debt — amounting to a quarter of GDP — the currency sell-off has tightened the noose on liquidity as co...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now