CBRT Raises TL Interest in Swap Transactions

CBRT Raises TL Interest in Swap Transactions CBRT raised the TL interest rate in swap transactions. The interest rate was increased from 10.25 percent to 11.75 percent. Yesterday, rate records refreshed as, US dollar / TL 7.94, Euro / TL 9.34 and the British pound / TL 10.28 Exchange rates, which closed at the highest points yesterday, continued to rise today. In addition to the dollar exchange rate approaching 7.96 at the beginning of the day, the euro and pound continued to rise. On the other hand, the same uptrend was observed in gold. With the ounce price of gold exceeding the $ 1,900 level again and the dollar exchange rate rising, gram gold was at 488 lira levels today. CBRT (Central Bank of the Republic of Turkey), which increased 200 bp interest in the September PPK meeting, increased the interest in rate swaps for TL to %11.75 from %10.25. After these steps from the Central Bank US Dollar / TL rate landed on 7.90 levels. During the summer season, the Turkish lira, which diverged negatively from other developing countries' currencies, weakened further in September; In the first week of October, it was traded as the developing country's currency, which lost the most value without recovering. The pressure on the TL, which has been further weakened due to the increase in geopolitical tensions, does not decrease. Exceeding the New Economy Program (YEP) targets announced by Minister of Treasury and Finance Berat Albayrak, the deficit in the current and cash balance and expectations that inflation will increase in the last quarter of the year continue to affect the market in terms of financial risks.