Chart of the week: investors go cold on Turkey

Turkish liras per US dollar

Investors are usually willing to overlook Turkey’s pervasive corruption due to the government’s pro-growth policies. But the latest scandal has engulfed rulers and rattled investors.

The currency has slumped by 20% to a record low against the dollar, while global investors’ holdings of Turkish equities and state debt have fallen by 33% and 27% respectively since May.