"I don't recall seeing this happen to any liquid and freely tradeable currency in the past 15 years."
In Turkey's ongoing attempt to crush currency manipulators, yesterday we reported that in addition to launching a "probe" against JPMorgan, the biggest US bank, for daring to cut its TRY price target, as well as threatening unnamed "manipulators", on Monday Turkish authorities took a page of the Chinese currency manipulation playbook, when they made it virtually impossible for foreign investors to short the lira as they soaked up virtually all intermarket liquidity, potentially threatening to kill the economy.
As we reported yesterday, the overnight swap rate on Monday soared more than ten-fold over the prior two sessions to more than 300%, the highest spike on record going back to the nation’s 2001 financial crisis as offshore funds clamoring to close out long-lira positions failed to find counterparties and the cost of a lira short exploded.
Think Volkswagen short squeeze but for a currency, or FXwagen.
Well, FXwagen went turbo on Tuesday, when this unprecedented move continued as Turkish Lira swaps exploded again, more than doubling overnight, and hitting an insane 1338%.
http://www.zerohedge.com/news/2019-03-27/turkey-verge-collapse-overnight-swaps-hit-700-cds-soar
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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