IIF's chief economist: EM capital flows following lira drop are indicative of potential for contagion

Institue of International Finance's chief economist recently crossed the news wires saying the emerging market capital flows following Turkish lira drop were indicative of a potential for contagion, as reported by Reuters.

Key quotes

• Obstacles for IMF program for Turkey are quite high as it would require higher interest rates, credit tightening.

Meanwhile, according to Turkish officials, President Erdogan held a phone call with German Chancellor Merkel and agreed that their finance minister would have a meeting soon. At the moment, the USD/TRY is down 4.15% on the day at 6.0840.