Page 5 - TURKRptNov20

2.0​ ​Politics
2.1​ ​Winter is coming...
Comparisons between the current situation on the Turkish markets and past experience ​overlooks​a small detail.​The government has burnt through more than $100bn in reserves since last year and it is still chucking more on the fire to support the beleaguered lira.
Turkey’s central bank ​harried​the markets on October 22 by confounding big expectations for a rate hike with the announcement that it was keeping its main policy rate (the one-week repo) at 10.25%.
Turkey will not move to impose stricter capital controls and that should be entirely clear, the country’s finance minister, Berat Albayrak, ​said​on October 27 during a telecall with representatives of around 100 companies.
This may suggest that the focus of markets has shifted to what could be done with capital controls, with the Turkish central bank’s reserves now in a perilous position following the failed fight to burn up dollars to defend the sinking Turkish lira.
5​ TURKEY Country Report​ November 2020 ​ ​www.intellinews.com