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How much was the dollar? (June 24, 2022)

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TL, which has accelerated its depreciation since mid-April, has been hovering around the 17.30 level for the past 10 days in a narrow band.

Today will be monitored the data on the capacity utilization rate of the manufacturing industry for the month of May, which will be announced by the CBRT at 10.00, and the real sector confidence index.

Also, the Treasury Finance Minister Nureddin Nebati Now The program, which should start at 10.30 will also be followed.

Although the CBRT held the policy rate unchanged at 14% yesterday, it has not provided any indication of the course of monetary policy from now on. The Central Bank has stated that it will implement macroprudential measures only if necessary.

Markets continue to wonder how the Turkish economy will meet the growing need for foreign currency, especially energy imports, and the sustainability of economic policies with the current exchange rate, where TL produces negative real returns.

In this context, the speech that Nabati will make today will also be followed.

As the decline in CBRT’s currency reserves continues, the new currency resources that will be provided by Turkey are closely followed as energy imports are expected to grow faster than tourism revenues.

According to data released yesterday, CBRT’s net international reserves fell by $ 771 million to $ 7.38 billion, a new low for the past 20 years. Stocks have fallen almost continuously since mid-April.

LIMITED INCREASE IN CDS

After depreciating 44% last year, TL has lost another 24% since the beginning of the year, mostly after April.

This week, the dollar / TL, which hit a new high since Dec 20th climbing as high as 17.5425 in the illicit market, was at 17.3500 / 17.3685 at 09:00.

After Turkey’s five-year CDS record, which surpassed 840 basis points (bp) last week, it rose slightly after the decline of the past two days. CDS fell yesterday, ending the day at 791/807.

Looking at international markets, Asian equity markets followed a fluctuating trend due to fears of a global recession and risk appetite weakened by the Fed’s aggressive interest rate hike expectations, while commodity prices also fell. .

CONCERNS THAT ECONOMIC GROWTH WILL SLOW DOWN

The dollar slid as global recession concerns dragged Treasury yields to a nearly two-week low. If the dollar closes at these levels, it will close at a loss for the fourth consecutive day.

Looking to the international markets, equities are preparing to record their first hike this month on a weekly basis as investor expectations that central banks could curb inflation, while concerns about slowing economic growth have brought prices down. raw material.

Falling metal and oil prices eased concerns created by rising global inflation driven by energy and food prices. Global equity markets, declining on fears that inflation might continue to rise in the near term, partially recovered in this way. The MSCI World Stock Market Index increased 2% on a weekly basis.

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