Turkey is exposed to a complete collapse in the economy and currency.

 Turkey’s beleaguered currency has been plunging to all-time lows against the U.S. dollar and the euro in recent months as President Recep Tayyip Erdogan presses ahead with a widely criticized effort to cut interest rates despite surging consumer prices.

As a result, families are struggling to buy food and other goods and the Turkish lira has lost around 40% of its value since the start of the year, becoming one of the world’s worst-performing currencies.

Turkey’s Central Bank has cut borrowing costs by 4 percentage points since September, in line with Erdogan’s wishes, even though inflation accelerated to around 20%.