Commerzbank Warns Turkey Facing Hyperinflation As CDS Explodes

CHART: via ZeroHedge

By Tyler Durden | 13 August 2018

ZERO HEDGE — The sheer pandemonium in Turkey continues.

It’s not just Turkey’s currency and sovereign bonds that have resumed their plunge today: Turkish stocks are all sharply lower, with the Borsa Istanbul down over 4% after dropping even more earlier in the session. However, that’s in local currency terms: in dollar terms, Turkish stocks are now at their lowest level since March 2009.

So far in 2018, the local stock market has lost a fifth of its value in lira terms, but a whopping 55% in USD terms, while banks – which Goldman recently warned would see their excess capital wiped out if the lira hits 7.1– have fared especially bad with the BIST 100 bank sector down 7.4% on Monday, 40.7% in local currency terms for the year to date, and down a whopping 70% YTD. […]

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