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Turkey's forex reserves an Achilles heel if sanctions were to deepen
Turkey’s paltry foreign currency reserves leave it vulnerable to a financial shock in the wake of its military push into Syria, with markets concerned that geopolitical tension and sanctions over the incursion could lead to a reprise of its 2018 lira crisis. A deal between Ankara and Washington to pause military operations in Syria has come as a respite for Turkish assets, which have been reeling since the incursion started nine days ago. Yet White House sanctions on a number of Turkish ministers and officials remain in place, a U.S. court case against state lender Halkbank for taking part in a scheme to evade U.S. ... (full story)