Turkey facing economic collapse; Slovakia and EU shouldn’t suffer yet

The Turkish lira has been plummeting recently, with a freefall being somewhat decelerated by an intervention on Tuesday by the country's central bank, which pulled the lira back from Monday's record low. Slovenská sporiteľňa bank analyst Katarina Muchová noted that the Turkish currency has lost 24 percent of its value compared to the US dollar since last Thursday, and has lost 21 percent against the euro. The analyst claims that Slovakia and the eurozone as a whole shouldn't be heavily affected by the Turkish economic crisis at this stage, however she cautioned that developments in the next few days will be of key importance. Saxo Bank FX Strategy chief John J. Hardy states that the euro has weakened due to political division in Europe concerning willingness to bail out affected banks. However, he added that the euro isn't expected to lose more than a few percent. Turkey is unlikely to be bailed out by the International Monetary Fund due to attitudes held by the country's President Recep Tayyip Erdoğan, added Hardy.