Turkey ‘highly vulnerable’ to liquidity pinch, says leading credit agency

Turkey ‘highly vulnerable’ to liquidity pinch, says leading credit agency

Turkey, Tunisia and other countries in the Middle East and North Africa are at risk of liquidity challenges due to tightening monetary conditions worldwide, according to S&P Global.

The New York-based credit rating agency released a report Monday identifying five emerging markets as especially susceptible to external funding stress: Turkey, Qatar, Tunisia, Egypt and Indonesia. 

Tightening monetary policy refers to the rise in central banks’ interest rates around the world in response to heightened inflation. Several Middle Eastern financial institutions have raised their rates this year, including Egypt and most Gulf states, including Qatar.