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bne November 2021
Companies & Markets I 21
Turkish lira drops through 9
bne IntelIiNews
The Turkish lira (TRY) fell through the 9.00 per dollar threshold to its latest all-time low on October 11. The currency is enduring another bout of weakness with the markets concerned that Turkey’s central bank in late September cut interest rates despite high and rising inflation.
The TRY stumbed to 9.0123 against the USD, marking a 0.5% decline on the day. The currency fell 6.5% in September and has continued to fall in October. “TRY @ 9, big level. Over 12 against Sterling, insane but reflective of bad monetary policy settings and [Turkish President Recep Tayyip] Erdogan’s failure to accept economic gravity,” tweeted Timothy Ash at BlueBay Asset Management.
The move to below nine came with a stronger dollar leaning on emerging market currencies but heavy domestic factors are weighing on the lira’s fate.
“CBRT [Central Bank of Republic of Turkey] has made lira vulnerable with its narrative on low rates despite high inflation and caused another major sell-off in the lira,” Piotr Matys, senior currency analyst at InTouch Capital Markets, said.
Syria hint
Markets were also concerned at Turkish President Recep Tayyip Erdogan hinting at a possible military offensive into neighbouring Syria, where Turkey-backed rebels are lined up against forces loyal to Syrian President Bashar al-Assad.
Erdogan speaking after a cabinet meeting on October 11.
But it is the widely-held belief that Erdogan is at the helm when it comes to Turkey’s monetary policy, and
is again pushing for more stimulus despite stubborn inflation, which has been giving investors a particularly perplexing and growing headache. The central bank has been using the argument that core inflation is trailing annual inflation to justify monetary loosening. However, even though the regulator may have done the Turkish president’s bidding with the rate cut, there are reports that Erdogan is “cooling” on central bank chief since March Sahap Kavcioglu. Prior to his appointment of Kavcioglu, Erdogan fired three central bank chiefs in a period of around 20 months over policy disagreements [Editor's note: Erdogan fired three more monetary policy committee members late on October 13].
Erdogan’s political fortunes also imply more instability
may be ahead. With Erdogan and his AKP party in serious trouble in the opinion polls, six Turkish opposition parties are stepping up collaboration in their bid to topple the president and ruling coalition in elections due by June 2023. The parties said they plan weekly meetings to agree shared principles by year-end.
"The opposition in Turkey is trying something that has never been tried before: getting united to confront the government," political commentator Murat Yetkin was cited by Reuters as saying.
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Contents
Top stories
Russia’s top retail and tech companies join forces to hunt for innovations in the rest of the world 2 Ukraine-born startups raised more
than half a billion dollars in 2019 4 Russian video streaming platforms
gain speed 5 Cloud services take off in Russia 6 SEMrush to SEO success 8
Leaders 9
Russia’s internet giant Yandex
announces growing and more
diversified revenues in 2019 10 Russian telecom major Rostelecom misses on earnings in 4Q19, cash
flow solid 12
Investment 13
World Bank approves $35mn project
to modernise Kyrgyz tax administration and statistical system 13 Romanian online home decoration
retailer raises €3.5mn in bonds 14 Russian billionaires Abramovich, Gutseriev, said to invest in Telegram
crypto project TON 14 Russian fund Da Vinci Capital gets
€30mn from Germany’s DEG to invest
in Ukraine, Belarus and Kazakhstan 15
Fintech & E-commerce 16
Russian e-commerce major
Wildberries to add self-employed
vendor products to offering 16 Russian Dixy retailer to launch online sales with Ozon 17 Valuation of Sistema’s e-commerce
asset Ozon boosted to $1.8bn 17
Telecom 19
Makedonski Telekom’s net profit
up 6% y/y in 2019 19 Romanian telco Digi grows by double
digit rates in 2019 19 Russia could postpone 5G rollout
from 2022 to 2024 20
NIBs 21
March 2020
www.intellinews.com
@bneintellinews
Russia’s top retail and tech companies
join forces to hunt for innovations in
the rest of the world
BAs Russia’s retail and tech sectors consolidate, the leading companies are turned their gaze outwards to hunt for
bne:Tech
new technology and innovation.
See page 2
Ukraine-born startups raised more
than half a billion dollars in 2019
In 2019, the venture capital and private equity funding volume for Ukrainian and Ukrainian-founded tech startups reached $544mn (up from $323mn in 2018 and $265mn in 2017), says AVentures Capital’s latest industry report ”DealBook of Ukraine”,
reports Adrien Henni of Ukraine Digital News. See page 4
www.bne.eu