Turkish Lira Not a Contagion Risk to EM Currencies: Saxo Bank

The video discusses the impact of $60 billion in Turkish assets, initially down by 5%, on emerging markets. Morgan Stanley warns of potential effects on currencies like the South African Rand and Russian Ruble. However, the Turkish Lira's behavior is unique and not typical of other emerging markets. The video also covers the potential reassessment of risks by financial institutions like BBVA and the containment of contagion risks in emerging market currencies.

What was the initial percentage drop in Turkish assets mentioned in the video?

• 10%

• 7%

• 5%

• 3%

Which currencies were mentioned as potentially being affected by the Turkish asset drop?

• Chinese Yuan and Japanese Yen

• Mexican Peso and Argentine Peso

• South African Rand and Russian Ruble

• Indian Rupee and Brazilian Real

How is the behavior of the Turkish lira described in the video?

• Predictable

• Idiosyncratic

• Volatile

• Stable

What is the main concern regarding the Turkish lira's situation?

• Inflation

• Contagion to other markets

• Interest rates

• Political instability

What is the conclusion about the risk of contagion into other emerging market currencies?

• High risk of contagion

• Moderate risk of contagion

• Minimal risk of contagion

• No risk of contagion