USD/TL Exchange Rate Focused On The CBRT Meeting

USD/TL exchange rate focused on the CBRT meeting. The fluctuating movement in the currency began to show signs of calming down.

Following the change in the presidency of the Central Bank of the Republic of Turkey (CBRT), the volatility in the USD/TL exchange rate, where volatility indicators rose to the levels seen in 2018, signaled recovery, while domestic markets focused their attention on the decision to be issued by the CBRT's revised Monetary Policy Committee. After the market-friendly messages from the FED (US Federal Reserve), the US dollar was on its way to closing the week with a depreciation, and a horizontal movement was observed in the USD/TL exchange rate. The currency, which starts the day at the level of 8.14, first transactions were around 8.15. Following the supportive signals given by FED Chairman Jerome Powell at the IMF-World Bank Spring Meetings, the US 10-year bond yield dropped to 1.61 percent. When other pricing on Turkish assets is analyzed, it is understood that the risk premium is 438 basis points and the benchmark bond rate is 18.56 percent. Following the change of governor in the Central Bank of the Republic of Turkey (CBRT), the first week experienced the hardest foreign outflow in 15 years, and in the second week following the change, it was observed that foreign investors were on the net sales side. According to the data of the CBRT, foreign investors sold 364 million dollars of net shares in the week of April 2, while the net sales on the bond side were recorded as 140 million dollars.