Business

Turkiye’s risk premium is at the lowest level in the last 2 years

Turkiye’s 5-year credit risk premium fell to 398 basis points, the lowest level since 8 November 2021.

After the general elections held in May, Turkiye’s risk premium continues to decline, following the “market-friendly” attitude of the new economy administration.

While developments regarding Turkiye’s new economy management continue to have an impact on asset prices, the statements of Dr. Hafize Gaye Erkan, President of the Central Bank of the Republic of Turkiye (CBRT), who delivered the Inflation Report yesterday, were received positively in the markets.

Analysts stated that Erkan’s communication style on behalf of the central banking, who was in front of the press for the first time after he became the CBRT President, was quite successful and said that despite the strong upward revision in inflation expectations, the risk appetite for Turkish lira assets increased.

Stating that Erkan gave confidence to the markets in this process, where the roadmap for the steps to be taken on price stability started to become clear gradually, the analysts stated that the change of duties in the CBRT management reinforced this confidence.

While CBRT vice presidents Emrah Sener, Taha Cakmak and Mustafa Duman were dismissed, Osman Cevdet Akcay, Fatih Karahan and Hatice Karahan were appointed in their place.

Analysts stated that the reputation of the appointed members in the domestic and international markets is quite high and predicted that the decline in Turkiye’s credit risk premium may continue in the future, with the effect of the steps taken for price stability and the new economy administration.

With these developments, Turkiye’s CDS dropped to the lowest level of the last 2 years with 398 basis points.

BIST 100 index exceeded 7,000 points threshold

Meanwhile, the BIST 100 index in Borsa Istanbul renewed its historical peak today after the record closing yesterday.

While the BIST 100 index surpassed the 7,000 threshold with the rise led by the banking index, it rose to 260 points, surpassing the 250-253 points level, which analysts considered as an important resistance, in dollar terms.

Thus, the index has gained approximately 53% since the second round of the elections.

Source: Trthaber / Prepared by Irem Yildiz

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button