El-Erian, BlackRock Flag Turkey Risk as U.S. Eyes Sanctions
Turkey said all the right things Thursday yet offered scant evidence for how the largest Middle Eastern economy will dig out of its worst currency crisis in decades. In a rare half-hour long conference call, Turkey’s Treasury and Finance Minister Berat Albayrak told about 6,000 global investors that he won’t impose capital controls. Turkey’s lira jumped after his remarks, while giving back most of its gains after Mnuchin said he had more sanctions at his disposal. It’s unlikely that Turkey will take steps such as tightening fiscal policy, raising rates to control inflation and restoring the independence of the central bank, said Kathy Jones, chief fixed-income strategist at Charles Schwab Inc. She expects more sanctions.