Turkey's Most Popular Money Market Funds Have Defaulted
After the Turkish lira fell to a new all-time low against the dollar on September 18, the country’s most popular money market fund defaulted.
An unprecedented crisis is unfolding in Turkey’s collective investment industry. The regulator (SPK) passed an emergency resolution to forcibly liquidate 131 investment funds that had defaulted on repaying their shareholders. The default affected more than 353,000 retail investors with a total investment of over $18.3 billion.
These investments were considered risk-free and were popular among conservative investors, but they lost money; the average investment was approximately $53,000.
This was reported by Reuters.
As a reminder, the Turkish lira has fallen below the value of the Ukrainian hryvnia for the first time in 20 years.
Meanwhile, Şimşek called Turkey’s inflation target for 2027 realistic.
