The Turkish Lira currently stands as the worst performing currency against the USD for the second year straight. Just this last month it has lost almost 40% of its value and the USDTRY seems to hit all time highs day-in-day-out. Although Turkey "only" faces a 20% inflation rate, the Central Bank has been cutting interest rates against general conventional wisdom. It is important to note that this meltdown in the Lira is not necessarily caused by a broad based USD Emerging Market matter, it is actually faulted by Turkey´s own idiosyncratic characteristics. This problem sets to possibly cause a Contagion (Spillover) effect that could spread not only to the EU, but the rest of the world. 

Credit for this episode: The excellent Weston Nakamura from Real Vision Finance!