Morning Note /
Turkey

Turkey: Another day and the Lira is down another 1.2%

  • There seems to be no end to this as there is no anchor for the Lira anymore

  • President Erdogan has announced that Turkey is entering a new economic independence war

  • The unanchored Lira will lead to significantly higher inflation in the coming months in our view

ATA Invest
23 November 2021
Published byATA Invest

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.

Company news:

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.

Weekly Agenda:

Nov 24: November Capacity Utilization (October 78%)

Nov 24: November Real Sector Confidence (October 109.6)