Mobius: 'Real possibility' of capital controls in Turkey

Would cause damage to other emerging markets

Emerging markets investment veteran Mark Mobius has warned of the negative implications for the emerging markets asset class as a whole if Turkey is forced to close its "foreign exchange window".

Turkey, which is facing a raft of fundamental problems such as double-digit inflation and an overheating economy, has seen its currency slide around 40% against the dollar this year and 20% in the last week alone. Mobius explores September launch for EM investment trust Speaking to Bloomberg TV, Mobius, who this year set up Mobius Capital Management following his departure from Franklin Templeton, warned there is a "real possibility" of capital controls being imposed in Turkey to stem the plunging lira, but he said this would have a negative impact on the rest of the emerging markets ...