Another day and the Lira is down another 1.2%, and there seems to be no end to this as there is no anchor for the Lira anymore.
In his talk after the Cabinet meeting, President Erdogan has announced that Turkey is entering a new economic independence war with a focus on increased production & investment leading to higher employment with the help of lower interest rates.
The unanchored Lira will lead to significantly higher inflation in the coming months in our view and this will increase the macro volatility and this “spring time” in equities will also come to a halt. This type of weakness in the currency can create a sudden-stop in the economy.
Sabancı Holding <SAHOL TI> bought back 600K shares at an average price of TL13.79 on 22 Nov 2021. Since 09 Nov 2021, the total number of shares bought back reached 1.400K at an average price of TL13.86.
Nov 24: November Capacity Utilization (October 78%)
Nov 24: November Real Sector Confidence (October 109.6)