Sonja Laud, head of equities at Fidelity International, says that one of the key issues facing Turkey in the currency crisis is that the amount of short-term debt denominated in dollars equates to 27% of Turkish GDP.
“That’s a huge number,” she tells the BBC's Today programme: “A lot of the debt held by the Turkish government or Turkish companies is held in a foreign currency.
"This is at the centre [of the current situation]. The more the Turkish lira falls, the more difficult it is to service debt which is why the central bank intervened yesterday, not to raise rates but to provide dollar liquidity so they can roll over the shorter [term] debt”.
The other part of the problem is that the US dollar is strong, which is putting pressure on emerging markets currencies too.