The Turkish Monetary Policy Board has increased interest rates by 1.75% to 15%, the first such increase in the last five years, following the publication of higher-than-expected inflation figures for May. The increase also comes as the current account deficit has reached a record $12.7 billion, a 45% increase over the same period last year. There has been strong volatility in the Turkish markets for the last three weeks with the Turkish lira depreciating by about 17% against the dollar and euro.
Argentina’s central bank governor Martín Redrado said that Argentine bonds "were the least affected" by sharp falls in international financial markets. Redrado attributed investor confidence to the credibility monetary authority "has gained... in foreign countries."
The Philippines' gross international reserves increased to a record high of $20.9 billion at the end of May, mainly due to Bangko Sentral ng Pilipinas' foreign exchange operations, income from investments abroad and from the government's deposit of proceeds from its project loans. This is enough to cover about four and a half months of import payments. Reserves are now worth more than three times the country’s short-term debt
Bulgaria’s government debt declined by 48 million euros, or 0.7%, in April to 6.4 billion euros at the end of April. Debt now accounts for 27.5% of GDP compared to 34.3% of GDP a year earlier. The drop is based on the weakening of the US dollar and the corresponding reduction in the euro value of the dollar-denominated bonds.