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The Grand Bazaar on August 7.
On August 3, Bloomberg published a story entitled “Five Signs That Argentines Are Losing Their Faith in the Peso”. Read the story with Argentina substituted for Turkey and peso for lira.
In March 2019, Ankara entered a phase which has seen it attempting to spook foreign market players by taking steps to make it harder for them to invest in lira assets. That phase is now in tatters.
On August 8, Erdogan exempted non-resident financial institutions from paying the 1% Tobin Tax when buying lira, making the move with a presidential decree published in the Official Gazette.
It was immediate in effect.
Turks are still obliged to pay the 1% Tobin Tax if they buy FX or gold via the system.
“Serious fund managers will struggle to get a Turkish stock past the investment committee for the time being,” Rimmer wrote on August 7.
Just stocks or should we read “a Turkish asset”?
On Turkey’s international reserves front, it could be said that it is a known unknown at this moment. Speculation is rife. For instance, did the central bank’s FX cash dry up on August 6, at which point it could not immediately sell its FX-denominated securities?
Amid the lira swings, a sovereign eurobond issue looks rather unlikely, Global Capital reported on August 7 in a story entitled “Turkish lira madness keeps bond plans on ice”.
On August 7, the Borsa Istanbul derivatives market introduced new USD/TRY
11 TURKEY Country Report September 2020 www.intellinews.com
