{"id":36745,"date":"2018-08-16T10:05:22","date_gmt":"2018-08-16T15:05:22","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36745"},"modified":"2018-08-16T10:05:22","modified_gmt":"2018-08-16T15:05:22","slug":"turkey-rules-out-capital-controls-as-germany-says-imf-bailout-would-be-helpful","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36745","title":{"rendered":"Turkey Rules Out Capital Controls As Germany Says IMF Bailout &#8220;Would Be Helpful&#8221;"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-08-16\/turkey-rules-out-capital-controls-germany-says-imf-bailout-would-be-helpful\"><span class=\"field field--name-title field--type-string field--label-hidden\">Turkey Rules Out Capital Controls As Germany Says IMF Bailout &#8220;Would Be Helpful&#8221;<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1240\" data-gtm-vis-first-on-screen-2077925_22=\"1240\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<div class=\"a2a_kit a2a_kit_size_32 a2a_default_style\" data-a2a-icon-color=\"#222\">\n<div>During this morning&#8217;s conference call organized by Citi, HSBC and other banks with &#8220;thousands&#8221;\u00a0 of investors, Turkey&#8217;s Treasury and Finance Minister\u00a0Berat Albayrak &#8211; the <a href=\"https:\/\/www.theguardian.com\/world\/2018\/aug\/15\/berat-albayrak-the-consigliere-entrusted-with-solving-turkeys-economic-crisis\">Jared Kushner of Turkey\u00a0 <\/a>&#8211; eased nerves when in an attempt to bolster confidence, said that capital controls were ruled out as a policy option for Turkey. As a reminder, capital controls are widely seen as the &#8220;<a href=\"https:\/\/www.zerohedge.com\/news\/2018-08-11\/worst-case-scenario-turkey\">worst case scenario&#8221; for Turkey <\/a>as they could precipitate &#8220;self-fulfilling contagion&#8221;, and lead to broader capital flight from the EM space.<\/div>\n<\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>Albayrak also said that reining in inflation and narrowing the current-account deficit were policy priorities, although he provided no details on how we would do that absent raising interest rates &#8211; an outcome that Erdogan has decried as unlikely &#8211; with both an IMF bailout and capital controls off the table.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20current%20account%20decicit_1.jpg?itok=JuVc9KHf\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/turkey%20current%20account%20decicit_1.jpg?itok=JuVc9KHf\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/turkey%20current%20account%20decicit_1.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/turkey%20current%20account%20decicit_1.jpg?itok=JuVc9KHf 1x\" alt=\"\" width=\"500\" height=\"224\" data-entity-type=\"file\" data-entity-uuid=\"fd1aac09-94df-40dc-aeed-60d33bc67237\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>Discussing Turkey&#8217;s runaway inflation, Albayrak said the central bank alone wouldn\u2019t be able to rein it in without tighter fiscal policy, although he has yet to provide any details on what options are on the table. In the meantime, GDP is set to slow further in the medium term from 7.4% expansion last year.<\/p>\n<p>Still, after losing as much as a quarter of its value in the past few weeks after the U.S. sanctioned members of President Recep Tayyip Erdogan\u2019s government, it continued to recover losses both before and after this morning conference call, rising to the highest level since last Friday, after Turkey cracked down on short sellers. Albayrak&#8217;s speech appears to have been successful, and the lira gained trading 4.0% stronger at 5.70 per dollar.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/usdtry%201.jpg?itok=DG34JpTH\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/usdtry%201.jpg?itok=DG34JpTH\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/usdtry%201.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/usdtry%201.jpg?itok=DG34JpTH 1x\" alt=\"\" width=\"500\" height=\"283\" data-entity-type=\"file\" data-entity-uuid=\"f4335ace-6241-4470-9d72-75b391b89cc9\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>Meanwhile, as Albayrak was hoping to preserve some stability, a German government source told Reuters on Thursday that &#8220;<strong>the Federal Government believes that an IMF program could help Turkey.<\/strong>&#8221;<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Turkey Rules Out Capital Controls As Germany Says IMF Bailout &#8220;Would Be Helpful&#8221; During this morning&#8217;s conference call organized by Citi, HSBC and other banks with &#8220;thousands&#8221;\u00a0 of investors, Turkey&#8217;s Treasury and Finance Minister\u00a0Berat Albayrak &#8211; the Jared Kushner of Turkey\u00a0 &#8211; eased nerves when in an attempt to bolster confidence, said that capital controls [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2015,110,1976,418,426,818,4318],"class_list":["post-36745","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bailout","tag-capital-controls","tag-currency-crisis","tag-imf","tag-inflation","tag-turkey","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36745"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36745\/revisions"}],"predecessor-version":[{"id":36746,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36745\/revisions\/36746"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}