Chart 1Turkey: The Central Bank Is Providing Ample Liquidity To Commercial Banks Turkey’s unorthodox macroeconomic policies are backfiring again. The Turkish lira plunged 15% against the US dollar after the Central Bank…
Turkey’s unorthodox macroeconomic policies have backfired again. After a 100-bps interest rate cut by the Central Bank of Turkey (CBTR) at their latest meeting, the Turkish lira has plunged by 15%. Still, the central…
Highlights Remain neutral on the US dollar. A breakout of the dollar would cause a shift in strategy. Russia’s conflict with the West is heating up now that Germany has delayed the certification of the Nord Stream II pipeline.…
Political and geopolitical forces are joining domestic economic policy in damaging the outlook for the Turkish lira. On Saturday, President Recep Tayyip Erdogan risked inflaming tensions with the West by ordering that 10…
The Turkish lira collapsed to an all-time low on Thursday following news that President Recent Tayyip Erdogan sacked two central bank deputy governors. One of the officials dismissed – Ugur Namik Kucuk – was the only member of…
The Turkish central bank surprised investors with a 100-basis point rate cut on Thursday, bringing the one-week repo rate down to 18%. The decision comes despite rising inflation. Headline CPI has been steadily climbing since…
Turkey’s current account deficit narrowed to $0.68 billion in July from June’s $1.13 billion. The improvement comes on the back of a recovering tourism sector. The trade balance in travel services strengthened to a pandemic high…
Feature Chart 1Turkish Markets: A Budding Breakout Or A False Start? Even though the Turkish lira and financial markets might be set for a short-term bout of outperformance versus their EM peers, investors should fade it (…
Turkey’s inflation rate continued to climb in July, reaching a 2-year high of 18.95% y/y, above consensus estimates of 18.6% and just a hair below the central bank’s policy rate of 19%. Although the core CPI eased slightly to 17.…
President Erdogan is once again injecting himself into the Turkish monetary policy. In an interview on Tuesday, the president stated “it’s an imperative that we lower interest rates. For that, we will reach July and…