Turkey lira crisis highlights emerging currencies plight

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Much of the Turkish lira's plight may be homegrown, but it shares some key vulnerabilities with other emerging countries whose currencies are now also plunging as fear of contagion spreads, analysts say. South Africa, Argentina, Mexico, Brazil and Russia have all seen their currencies slip over the past week because, like Turkey, they remain heavily dependent on foreign capital, especially the dollar. "This is a typical 'flight to quality' move from foreign investors out of emerging markets to safer, developed countries," Agathe Demarais, lead Turkey analyst at the Economist Intelligence Unit, told AFP.

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