Bank of America Evaluated The Management Change at CBRT

Bank of America Securities analysts analyzed the change in the Federal Reserve.

Bank of America evaluated the management change at the CBRT. Bank of America Securities analysts pointed out that this change in the Central Bank of the Republic of Turkey was made during the period when foreign positioning in Turkish Lira was at its highest level in the last 10 years in 2017. According to analysts, while non-bank companies in Turkey have solid buffers against the fall in TL, some companies aiming to issue eurobonds in the coming months may apply different financing methods. In the report released yesterday by Bank of America, it was stated that the sudden change of governorship in the Central Bank coincided with a period in which there was an increase in US bond yields and investors, especially Russia and Brazil, were worried about the news flows about emerging economies. In the note shared by the institution, following statements were made; “We recently increased our year-end forecast for the US 10-year bond yield to 2.15 percent. The change in the CBRT took place at a time when the foreign positioning in the Turkish Lira was at the peak of the last 10 years in 2017.” Noting that the 2021 end-of-year forecast is 12 percent, Bank of America noted that this forecast is based on the assumption that the policy rate will be kept at 19 percent until the end of the third quarter.