Following emergency bank meetings and numerous pleas by Erdogan for Turks not to "pull FX out of their banks," blaming the country's current economic crisis on America, the Lira has opened massively weaker - crashing below 7.00 per dollar for the first time ever.
"I’m calling out to industrialists, do not attack banks to buy FX," said Turkish President Recep Tayyip Erdogan in a speech in Trabzon.
"It is industrialists’ duty too to keep this nation on its feet. Otherwise we will set into motion our plan B and C," he added.
Reuters reports a low level of 7.22 - all of which implies the Turkish banking system is done.
As Goldman Sachs warned, further lira depreciation to 7.1 would erode all of Turkey's banks' excess capital.
Turkish Lira on Hyperinflation Path
Plan B or C
I suggest one of then is capital controls. Hyperinflation may easily set in. If you have money in Turkish banks, take it out now, if you can.
Mike "Mish" Shedlock