Very Difficult for Lira to Find a Floor, Says StanChart's Devesh

The video discusses the challenges facing the Turkish lira, emphasizing the need for a coordinated policy response involving monetary, fiscal, and foreign policy. It highlights the contagion risks to the euro and the FX market, particularly focusing on European banks' exposure to Turkish assets. The discussion also covers the potential impact of corporate debt defaults in Turkey, which could lead to significant market instability, especially in the Balkans.

In what ways have European banks been affected by the decline of the Turkish lira?

What is the significance of unhedged foreign currency borrowing by Turkish corporates?