Page 12 - TURKRptDec22

So, the summer decline in gas imports did not produce the expected recovery in the trade balance. The central bankers worked harder to write bigger tourism revenues.
● USD/TRY: Latest record - 18.8760 recorded on December 1. Since September 28, USD/TRY has been testing the 18.60-level.
Turkey’s five-year credit default swaps (CDS) fell below the 600-level. The yield on the Turkish government’s 10-year eurobonds fell below the 10%-level.
● Balance of Payments: The current account deficit ran wild again.
Financial flows stopped; as a result, they are stable. Turks are calm as the USD/TRY rate has remained fixed for two months.
Debt-rollovers continue undeterred but with no fresh inflow. In November, the autumn season for Turkish banks’ syndicated loan renewals was completed. Eurobond auctions stopped in March. Net FDI remains around zero.
The unidentified flows channel is working through at the moment.
The Turkish central bank’s net FX position stood at minus $57.2bn as of November 11 (Chart by @e507).
● Eurobond auctions: In October, the Treasury sold $2.5bn worth of 3-year sukuk papers at 9.758% coupon. In November, the Treasury again sold $1.5bn of eurobonds due January 15, 2028 at a coupon rate of 9.87% and a yield to investor of 10%.
● NPLs, bailouts and debt restructuring queues are building up.
12 TURKEY Country Report December 2022 www.intellinews.com