USD/TL Fluctuates On The Second Day As Well

The USD/TL exchange rate, which increased on the first trading day after the management change in the CBRT, fluctuates on Tuesday.

USD/TL fluctuates on the second day as well. The USD/TL exchange rate, which fluctuated on Monday after the change of Governor in the Central Bank of the Republic of Turkey, continued to fluctuate on the second day of the week. While the increase recorded in the currency was over 1 percent, exchange rate reached above 7.94. Later, a downward movement was seen in the currency and the TL recovered its losses against the US dollar. After the change of the Central Bank, the first quotations in USD/TL increased by approximately 16 percent on Monday and the level of 8.47 was seen. While there was a fluctuating day in the exchange rate, the closing was at the level of 7.80. While the BIST 100 index closed the day with a loss of around 10 percent, Turkey's 10-year TL-denominated bond yield increased by 483 basis points and closed at 18.89 percent. The dollar-denominated bond yield of the same maturity increased 138 basis points in one day. With the change of management in the economy in a short time, Turkey's 5-year CDS premium reached 455 basis points with a record daily increase. The 3-month option volatility of the USD/TL also increased to 32 percent. Renaissance Capital increased its year-end USD/TL forecast from 7.5 to 9. Shamaila Khan of AllianceBernstein stated that following the decision, Turkish bonds have become the lowest attractive bonds among developing countries. Speaking to Bloomberg TV, Khan underlined that this decline in the Turkish Lira will cause inflation.