The Central Bank’s investor meeting, which was originally planned for June 30, will be held today. At the previous meeting, the Central Bank Governor Sahap Kavcioglu emphasized that unjustified expectations of premature easing in the markets should completely disappear and that the disinflation process in the country will begin by the end of Q3.
On another meeting with the Banks Association of Turkey (TBB) members, Kavcioglu said that the bank is in talks for swap lines with four countries and is close to ink a deal with two of them. The details are likely to be asked to the Central Bank Governor today.
As we mentioned yesterday, the bank increased reserve requirement ratios for foreign exchange (FX) deposits and participation funds by 200 base points for all maturity brackets while it also decreased the upper limit of the facility for holding FX for TRY reserve requirements from 20% to 10% in order to improve the effectiveness of the monetary transmission mechanism. Yet, these steps couldn’t create a significant impact on USD/TRY that saw below 8.65.
Therefore USD/TRY exceeds 8.68 this morning prior to the investor meeting. EUR/TRY, which started the week at 10.46 is traded at just below 10.30.
DAILY AGENDA
Trade Minister Mehmet Mus will announce foreign trade statistics for June (11.30 am).
The Central Bank will hold the Investor Meeting with economists and analysts via videoconference.
The Central Bank will release the Bank Loans Tendency Survey for the April-June period.
