Turkish lira madness keeps bond plans on ice

Turkey flag adobe stock AS 230x150
By Ross Lancaster
07 Aug 2020

A tumultuous week in Turkish currency markets ended with the lira hitting new lows against the dollar and the Central Bank of the Republic of Turkey finally taking action to try and calm volatility. Amid such swings, a sovereign bond issue looks unlikely.

On Friday, the lira touched TL7.35 to the dollar, a record level. That weakness came despite the CBRT halving the liquidity limits that it offers to primary dealers through its open market operations, actions that the central bank takes to control short term interest rates.

While market participants ...

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