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Erdogan's firing of Turkey's central bank chief sent the lira tanking and the nation's stocks tumbling.
Turkey’s central bank is boosting its reserves with ‘off balance sheet’ short-term swaps — and investors are aghast
Turkey's central bank has admitted that much of its currency reserves are held in short-term swap contracts.
"There is a heightened risk of a downside funding scenario, where a deterioration in investor sentiment limits access to market funding," Moody's said, noting that "Turkish banks are highly reliant on foreign currency funding."
Turkish President Tayyip Erdogan tweeted: "I sincerely thank Sheikh Tamim and the Qatari people for standing by Turkey. There is no doubt that our strong relations with the friendly and brotherly state of Qatar will continue to evolve in many areas."
Metals in particular are suffering as a higher dollar caused by the EM currency sell-off pushes commodity prices sharply lower.
Andrew Brunson, an imprisoned evangelical, became a flashpoint in Turkish-US relations which contributed to the crisis that is sending Turkey's economy plummeting towards rock bottom.