Turkey loses investor trust, leaves bleak outlook for market access

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By Mariam Meskin
25 Mar 2021

Confidence in Turkish assets hit fresh lows this week as investors struggled to digest a fresh wave of volatility after its central bank governor was sacked following an interest rate hike. With government and bank funding needs to be met in the international market, the Central Bank of the Republic of Turkey has a big job on its hands in regaining investor confidence — though some say the damage has already been done.

Spreads on Turkish government bonds have widened since last Friday — the day before the shock sacking of Central Bank of the Republic of Turkey (CBRT) governor Naci Ağbal, who had been in the post only five months — as a reflection of president Recep Tayyip Erdoğan frustrating emerging market investors yet again.

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