LONDON - Turkey’s lira and dollar bonds rallied on Monday after the departure of central bank Governor Murat Uysal and Finance Minister Berat Albayrak over the weekend, with Naci Agbal taking over at the central bank.
“The latest reshuffling at the CBRT accompanied by the resignation of Treasury and Finance Minister Albayrak have triggered a long-overdue correction following the parabolic move higher in USD/TRY. We are modestly optimistic that an important short-term top is in place, although this depends on the scale of any rate hike and Albayrak’s successor.
“Until Turkey adopts a much more restrictive monetary policy, downside risks to the currency remain.”“Turkish political risk jumped over the weekend. First, President Erdogan fired central bank Governor Murat Uysal. He was replaced by former Finance Minister Naci Agbal, who has no experience in monetary policy but regarded as a market-friendly technocrat.
Busted economy, ambitious nation.
More good news please(((
TURKISH BULLS FX SHOW...
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