Page 12 - TURKRptOct22

● USD/TRY: Latest record - 18.8760 recorded on December 1. Since September 28, USD/TRY was testing the 18.60-level.
Turkey’s five-year credit default swaps (CDS) remain above the 700-level. The yield on the Turkish government’s 10-year eurobonds remains above the 11%-level.
● Balance of Payments: The current account deficit ran wild again.
Financial flows stopped; as a result, they are stable. Turks are waking up as the USD/TRY rate is rising again.
Debt-rollovers continue undeterred but with no fresh inflow. In October, the autumn season for Turkish banks’ syndicated loan renewals is to begin. 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 $61.7bn as of September 30 (Chart by @e507).
● Eurobond auctions: The Treasury sold $2.5bn worth of 3-year sukuk papers at 9.758% coupon.
● NPLs, bailouts and debt restructuring queues are building up.
12 TURKEY Country Report October 2022 www.intellinews.com