Erdogan's FX troubles get worse

Erdogan can’t pry Turkish investors from their greenbacks: Turkish government efforts to drive support for the TRY are doing little to persuade investors to part with foreign currency holdings, with total USD deposits rising to a record USD 239 bn in one week last month, Bloombergreports. Despite apparent massive interventions in December to try and bolster the sliding TRY, the currency slid back to 13.30 to the USD yesterday. And with inflation at over 36% and Turkey’s official reserves dwindling, it’s unclear how long policymakers can stand in the way of USD demand, Bloomberg says.