Banks ditch bullish Turkish lira bets as oil shock strains currency

8 articles · Updated · Bloomberg · May 11

Bank of America and Barclays have recently exited long-lira positions as the Iran war enters its third month and raises Turkey's energy import costs.
The reversal threatens a popular lira carry trade, in which investors borrowed cheaply elsewhere to buy higher-yielding Turkish assets.
That strategy had been one of emerging markets' hottest trades for nearly three years, but rising oil bills now risk accelerating the lira's decline.

Why is Goldman Sachs betting on the Turkish lira while other major banks are fleeing?

With reserves dwindling, how long can Turkey’s central bank defend the lira against the war's economic shock?

As Iran's leadership collapses, will its proxy network crumble or ignite wider regional chaos?