Turkey is acting as a spigot of capital flows between Europe and the Middle East because of the different financial philosophies that exist between the west and Islam. The west is used to seeking a financial return based on interest yield while Islam is only allowed to seek a financial return based on profit sharing because of its religious belief. This diverse dichotomy between the 2 philosophies engenders a great opportunity for Turkey to be a financial hub in the Middle East.
Turkey is able to repackage and re-export the investments between Islamic countries and Europe so that both opposing sides can flourish. Thus, if anything happens to Turkey, the capital and investment flows between the Middle East and Europe will decline significantly and disrupt both continents.
Let's take a look at Turkey's economic situation now.
Turkey is in dire straits from the economic standpoint. It is not able to defend against any malicious attack on its economic and financial sectors.
We had highlighted this in our previous post below.
http://sg-stock.blogspot.com/2019/03/1997-asian-financial-crisis-is.html
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