by Amruth Sundarkumar | Aug 19, 2022 | Sovereign Bonds, Sovereigns
Turkey cut its benchmark interest rate by 100bp to 13% yesterday, despite annual inflation at levels of near 80%. Most analysts expected a status-quo at the rate-setting meeting and thus were taken by surprise. The Turkish central bank said that it expects the...
by Amruth Sundarkumar | Aug 15, 2022 | Credit Ratings, Sovereign Bonds, Sovereigns
Moody’s has downgraded Turkey from B2 to B3, with a stable outlook as the pressure on Turkey’s balance of payments has risen due to higher energy prices. Moody’s expects Turkey’s current account deficit (CAD) at ~6% of GDP for the current year, over 3x higher...
by Amruth Sundarkumar | Aug 12, 2022 | Sovereign Bonds, Sovereigns
Turkey’s FX reserves rose by $7.4bn in the week ended 5 August, the highest jump YTD, to $109bn following money transfers from Russia for the construction of a nuclear power plant. Russia’s Rosatom Corp was in the process of transferring $15bn to its Turkish...
by Amruth Sundarkumar | Aug 5, 2022 | Sovereign Bonds, Sovereigns
Turkey’s bond prices are rallying on news that its net forex reserves jumped about $2.4bn to $9.12bn in the last week of July, the highest level in the last two months. Reuters notes that this is in stark contrast to the sharp drop in reserves in December, when...
by Amruth Sundarkumar | Jul 27, 2022 | Banks, Credit Ratings
Fitch has downgraded 25 Turkish Banks from B to B- on the back of Turkey’s downgrade from B+ to B two weeks ago. The rating agency cites heightened macroeconomic risks, rocketing inflation and a feeling of uncertainty around the authorities’ policy efficacy....
