Have you ever thought that there are more volatile instruments in financial markets than cryptocurrency? A year ago, digital asset speculation became an extremely profitable enterprise, overshadowing the trading instruments of classical markets.
Today, everything gradually returns to normal. The digital industry is no longer a hype, and investors who have lost their vigilance, focusing on Bitcoin alone, are missing out on great opportunities and lucrative histories of the traditional foreign exchange market.
Just a few days ago, a full-fledged economic crisis broke out in the Turkish economy, which led to a storm in the national currency market. Everything would be fine, but an analysis of the latest price trend of the Turkish lira indicates that its volatility exceeds the movement of Bitcoin.
We will immediately make a remark, unlike the founder of the crypto industry, whose movements are difficult to predict, the collapse of the Turkish currency is more than predictable and justified. The fact is that Turkey has become another victim of American sanctions and Donald Trump personally.
Given the state of its balance of payments, as well as the extreme form of dependence on American imports, the US sanctions policy immediately plunged the national economy into a state of crisis. The Turkish Lira (USD / TRY) almost collapsed twice, inflation went into double-digit territory, hitting consumer activity.
At the same time, the dollar began to grow, which is also more than predictable, given its protective properties. It is worth noting that the expensive dollar represents a serious threat to emerging markets. The more expensive a dollar is, the harder it is for countries to fulfill their debt obligations denominated in it.
The debt of same Turkey exceeds 200 billion dollars. Of course, the risk of default will continue to stimulate high rates of capital outflow, which at any time could lead to another wave of sales of the Turkish currency. We advise you not to miss this wave.
Turkey’s influence on the euro currency is due to concerns that the economic crisis could very quickly spread from Ankara to key countries of the currency bloc. Today, Turkey’s total debt to Spain, France, and Italy exceeds $ 150 billion.
Of course, if a full-fledged economic crisis breaks out in a country, then its potential default will be the reason why this debt will be placed in the category of bad and uncollectible.
Given the not the best financial position of the banking system of same Spain, liquidity problems may arise in the European Union. It is concerned about the safety of European assets in Turkey and acted as a catalyst for the breakdown of psychological support 1.15. Now, the bearish rally of EUR / USD is a self-sustaining process. The goal of the decline is supported 1.1.
American sanctions collapsed and the ruble. The new package of financial and economic measures (against banks and the possibility of deposits in OFZ) can really be a serious blow to the Russian economy. Russian banks will not be able to conduct standard dollar transactions through correspondent accounts in foreign financial institutions, in fact, their assets will be completely frozen
No less risk is the potential ban on non-residents from working with Russian debt, that is, bonds. Despite the fact that the restrictions will apply only to new issues, it risks provoking the exit of investors from earlier placements.
In other words, the Russian economy is also on the verge of a liquidity crisis, during which the USD / RUB (USD / RUB) rate may well settle above 75. We advise not to delay here.
All these transactions on the most favorable conditions, you can conduct a broker AMarkets. The company ensures the protection of traders’ accounts in the amount of up to 20 thousand euros, and also recently passed an audit by AMarkets, the largest consulting company Ernst & Young.