Morning Note /
Turkey

Turkey: CBRT governor says will not intervene unless there is excess volatility

  • It was another historic day for Lira as at one point it was down 18% against US$

  • These will lead to a sudden stop in the economy as we hear nobody is accepting term payments nowadays

  • Non-financial equities are holding on for the time being as an inflation hedge

ATA Invest
24 November 2021
Published byATA Invest

It was another historic day for Lira as at one point it was down 18% against US$ and the CBRT governor said it will not intervene unless there is excess volatility. If an 18% drop is not excess volatility, what is we really don’t know.

These will lead to a sudden stop in the economy as we hear nobody is accepting term payments nowadays. Even investors who has bet on the BBVA tender call for Garanti has lost money with the currency move.

Non-financial equities are holding on for the time being as an inflation hedge but if there are no steps taken to decrease FX volatility, springtime for equities will not last for long.

Company news:

THYAO: Arrowstreet Capital’s share in Turkish Airlines increased to 5.01% after they bought 776k at TL 17.13

Weekly Agenda:

Nov 24: November Capacity Utilization (October 78%)

Nov 24: November Real Sector Confidence (October 109.6)