Turkish currency collapsed late on Friday, after it became clear that the group made for military coup in Turkey. The Turkish lira depreciated by 5% against the USD, which is a dramatic decline in base currency. The crash happened a little after media reported that the Turkish army has announced that the military take power over the country. The reports of unusual military action appeared in the social network Twitter shortly before the closure of US markets on Friday.
These initial reports led the index iShares MSCI Turkey ETF (TUR) to close with a decline of 2.5%. ETF, which after Turkish shares tumbled another 6% in trading after market close.
Turkey is in a deep civil conflict – the revolt of European thinking liberal intelligentsia pronounced against the authoritarian regime of President Recep Tayyip Erdogan. What happened last night shows how deeply divided Turkish society is. The Europeanization attempts of Turkey, like seeing that ends in failure. The political crisis will not end, it will deepen. The conflict between the government and the army became a civil conflict.