Markets Started the Week with Shocks!
Markets started the week with shocks! What's happening in the financial world?
The first trading day after the change of the
Central Bank of the Republic of Turkey (CBRT) Governor started quite tough for the markets. Last night, with the opening of the Asian markets, the USD exchange rate tested the level of 8.47 as a result of the increases that exceeded 15 percent. On the other hand, with the dynamism in the Euro exchange rate, 10.08 levels were seen.
After the first reactions in the Asian markets, the exchange rates decreased to a certain extent this morning. Immediately after, the decline accelerated with the announcement from the Minister of Treasury and Finance Lütfi Elvan that "the free market mechanism will not be compromised". While USD/TL rate regressed towards 7.50, Euro/TL decreased to 9.15.
On the last trading day of last week, the US dollar recorded the lowest level since February 25 with 7,1897; It had made its closing at the level of 7.21. Euro/TL closed the last week at 8.60 level.
British Pound Refreshes Its Record
The Turkish Lira, which lost its strength against the US dollar and the Euro, British pound refreshed its record. The British Pound/TL exchange rate, which closed just above 10 last week, recorded an all-time high of 11.7427, with the harsh reaction experienced last night. Rate recorded its previous peak with 11.2813 last November.
Double Digit Value Loss in One Day
The Turkish Lira has experienced double-digit depreciation twice in a single day in the last 20 years. One happened with 15.1 percent in August 2018, and one happened today. Timothy Ash from Bluebay Asset Management explained the double-digit loss of TL against the US dollar today with the statements "The cost of dismissing Ağbal ...".
New CBRT Governor Held First Meeting with Bankers
In his first statement, the new President of the CBRT, Prof. Dr. Şahap Kavcıoğlu, stated that they will continue to use monetary policy tools effectively in line with the main goal of achieving a permanent decrease in inflation.
CBRT Governor Kavcıoğlu held a meeting with bank general managers under the administration of the Turkish Banks Association. Banking sources stated that a beneficial meeting took place, and that the impression was obtained that the market would not be intervened and the markets would act within themselves.