Turkey's fragile economic growth foundation is the main reason for the continued decline of the currency. Turkey has twice been rated as one of the "five fragile countries" by international organizations. Its economic fragility includes persistent current account deficit, large external financing demand, limited foreign exchange reserves, excessive dependence on short-term capital inflows and high foreign exchange risks faced by enterprises. The high dependence on foreign capital, especially short-term capital, has deeply affected Turkey's economic development and domestic financial market. The Turkish currency lira has also become one of the most fragile emerging currencies in the world.