CBRT Cut The Interest Rates, USD/TL Broke A Record

CBRT cut the interest rates, USD/TL broke a record. Right after the interest rate cut, the USD/TL rate reached the level of 9.48.

USD/TL reached 9.48 percent after the Central Bank of the Republic of Turkey cut the policy rate to 16 percent at the Monetary Policy Committee meeting, while the Turkish lira became the most depreciated developing country currency on Thursday. Euro/TL has exceeded the level of 11.00. Turkey's credit default risk premium (CDS) stands at 458 basis points, while the 10-year bond yield hovers around 20.35 percent. The US dollar rate rose by around 6 percent after the CBRT's interest rate meeting on September 23 and broke a record closing day with 9.3344. The dollar rate, which decreased slightly after that, was hovering around 9.21 in the morning transactions before the CBRT's policy rate decision. From October 8 to October 19, the USD/TL recorded the longest record rise of the last 1 year, with 7 days, by renewing the record every day. The USD/TL broke the record for 8 consecutive days from October 23 to November 2, before November 2020, when changes were experienced in both the CBRT and the management.