Latest news with #lira
Bloomberg
02-07-2025
- Business
- Bloomberg
Turkish Bonds Erase 2025 Loss After Court Delay Spurs Rally
Turkey's lira-denominated bonds erased their year-to-date losses after a court's decision to postpone its ruling on the country's opposition leader spurred a rally of over 3% in just two days. Two-year yields currently stand at 39.76%, having dropped about 200 basis points so far this week, after the court delayed its ruling on a case that could unseat Ozgur Ozel. That's taken borrowing costs back to levels seen just before the March arrest of Istanbul mayor Ekrem Imamoglu triggered a wave of nationwide protests and fueled a selloff in Turkish assets.
Bloomberg
21-06-2025
- Business
- Bloomberg
Turkey Boosts Reserve Rules on Some Deposits to Support Lira
Turkey raised the amount of cash lenders must park with the central bank against some deposits, as part of measures to support the lira after it became the worst-performer in the Europe, Middle East and Africa region. Reserve requirement ratio for so-called KKM accounts, which compensate depositors for lira depreciation, has been increased to 40% from 33%, the monetary authority said in a statement on Saturday. It also reduced the minimum interest rate such accounts earn to 40% of the policy rate, from 50% earlier.
Bloomberg
11-06-2025
- Business
- Bloomberg
Turkey Central Bank Seeks to Repel Short-Term Carry Trade Bets
Turkish policymakers are taking steps to deter so-called 'hot money' flows into the lira, pushing back against one of the world's most lucrative currency bets. While the central bank has kept a tight rein on the lira market and allowed the currency to slide gradually, traders say market moves have become less predictable lately. On recent Fridays in particular, the lira has weakened three to four times faster than the average pace on other days, according to Bloomberg calculations.
Bloomberg
29-05-2025
- Business
- Bloomberg
Goldman Warns World's Best Carry Trade at Threat From Lira Slide
The most successful carry trade in the world looks vulnerable as Turkey's central bank allows the lira to drop, says Goldman Sachs Group Inc. Turkey's monetary authority is allowing the lira to depreciate against the dollar at a faster pace than usual, possibly to limit hot money inflows and counter exporters' complaints that the currency is overvalued, Goldman economists Clemens Grafe and Basak Edizgil said in a note on Wednesday.
Bloomberg
24-05-2025
- Business
- Bloomberg
Turkish Central Bank Tightens Screws on Cheap Lira Window Abroad
Turkey's central bank raised the reserve requirement ratios on banks' short term liabilities abroad in a bid to discourage local banks from seeking cheap lira from offshore markets. The bank early Saturday raised the reserve requirement ratio to 18% for maturities as long as 1 month in lira-denominated funds from repo transactions and loans obtained from abroad, and to 14% for maturities as long as 3 months. Previously, the reserve requirement ratio was 12% for maturities of as long as 1 year for repo transactions and loans abroad.
