Dollar Is Steady Before MPC Meeting

Dollar Is Steady Before MPC Meeting The dollar is steady before the MPC meeting. CBRT will announce its interest rate decision at the meeting to be held tomorrow. The Central Bank of the Republic of Turkey (CBRT) will perform the Monetary Policy Committee (MPC) tomorrow, before the meeting, the dollar / TL looks to be on a dry fall. The dollar / TL exchange rate, which closed at 7.6565 yesterday, started to move downwards after it started calmly this morning. Dollar / TL fell 0.32 percent at 11 am and was traded at 7.6323 and Euro / TL at 9.3188. The currency basket has reached 8.4756. The positive impact of normalization steps taken in the name of economic recovery on TL-denominated assets continues to manifest themselves. The interest of Turkey's two-year term Treasury bonds remained at 14.7 percent, while the yield on 10-year dollar bonds fell 8 basis points to 5.57 percent. The 5-year credit default swap (CDS) premium, which is the country risk indicator, appears to be at 335 basis points. On the other hand, developments in global markets raise concerns. The developments in the stimulus package in the USA, the coronavirus vaccination application and the uncertainty about the mutation of the virus increase the uncertainty in the markets and blunt the optimistic stance. At the first meeting of the new President of the CBRT, Naci Ağbal, the highest rate increase in 2 years was realized, and the policy rate was increased by 475 basis points to 15 percent. An increase in the interest rates is expected from the last MPC meeting of the year that will take place tomorrow.