Turkey’s $75 Billion Hot-Money Boom Creates Policymaker Dilemma

A surge of inflows into Turkish lira assets is providing support for the currency, but policymakers face a dilemma: curb speculative short-term flows while avoiding a reduction in liquidity support. The article frames this as a near-term policy trade-off rather than an outright deterioration or improvement. Likely FX sensitivity remains elevated as authorities balance stabilization needs against volatility from hot money.