Turkey has slipped alarmingly quickly from emerging market darling to market danger zone – and the emergency meeting of its central bank Tuesday evening is the latest attempt to stem an investor exodus.
Local investors have been selling off their lira in favor of foreign currencies, and international investors have been staying away from the lira, pushing its value down to a record low of 2.3616 against the U.S. dollar. The cost of Turkey's debt is also rising alarmingly quickly, with 10-year debt hitting 10.45 percent, its highest since 2010.
Investors will be watching Turkey's central bank Tuesday to see if it yields to market pressure and increases interest rates in an attempt to buttress the lira.
The bank is holding its first extraordinary monetary policy meeting since the summer of 2011. It said there will be a statement on the outcome of that meeting at 5pm ET Tuesday.