Turkish lira stabilises after heavy selloff
Lira hits fresh record low versus dollar
Fall shows move towards freely traded currency - economists
'No air of panic' in markets, says trader
Investors hope new finance min will restore orthodox policies
Adds fresh deposits into central bank accounts in paragraph 5
By Nevzat Devranoglu and Ali Kucukgocmen
ISTANBUL, June 8 (Reuters) -A sharp selloff in Turkey's lira slowed on Thursday, when it slipped only 0.8% compared with a 7.2% plunge the day before, as traders said it was nearing more "normal" levels ahead of the expected appointment of a new central bank governor.
When the currency dropped on Wednesday, traders said it was a sign of authorities easing controls on the foreign-exchange market. When it steadied on Thursday, some said authorities were once more stabilising things by providing more liquidity.
"They are again defending the lira today," said one banker who requested anonymity.
The currency TRYTOM=D3 stood at 23.38 against the dollar at 1448 GMT. Earlier it touched a record low of 23.3965, bringing its losses to 20% this year.
Turkish central bank reserves data showed inflows of about $3 billion into deposit accounts last week from abroad, bankers said on Thursday.
In a sign of caution, Turkey's five-year credit default swaps (CDS) added 34 basis points from the Wednesday close, breaking back above 500 to hit 516 bps, data from S&P Global Market Intelligence showed.
The lira selloff a day earlier was the biggest since a historic crash in late 2021, after the central bank slashed rates in the face of rising inflation as part of President Tayyip Erdogan's unorthodox policies.
Economists said the lira's sharp drop was a signal that Ankara was moving away from state controls towards a freely traded currency, albeit there are numerous regulations and measures that are yet to be rolled back.
Traders said the currency should not depreciate as much as it did on Wednesday because it is nearing levels where it does not need to be defended through the use of reserves.
"There is no air of panic in the markets as in previous times when there were such high losses. On the contrary, there is a perspective of normalisation, which is important," a forex trader said.
Dollar-denominated bonds maturing in 2040 and 2045 suffered the biggest declines, down 1.2 cents, with others chalking up similar losses, Tradeweb data showed. US900123CG37=TE
Under Erdogan's unorthodox programme, authorities have been taking a hands-on role in foreign exchange markets, using up tens of billions of dollars of reserves this year alone to hold the lira steady.
But following his re-election last month, Erdogan signalled a U-turn at the weekend by naming Mehmet Simsek, a former deputy prime minister well-regarded by foreign investors, as Turkey's new finance minister.
Simsek later said economic policy needed to return to "rational" ground and there were "no quick fixes" for policy.
CHANGE OF TACK
As part of the policy pivot, Erdogan is considering appointing Hafize Gaye Erkan, a U.S.-based senior finance executive, as central bank governor, Reuters reported on Monday.
Investors said they are awaiting that appointment and also a potential emergency rate hike - to around 25% from the current 8.5% - ahead of the central bank's next scheduled meeting on June 22.
If appointed, Erkan would be the fifth central bank chief in four years and succeed Sahap Kavcioglu, who has spearheaded Erdogan's rate-slashing drive since 2021.
Under pressure from the president, a self-described "enemy" of interest rates, the bank under Kavcioglu cut its main rate to 8.5% from 19%, sparking a historic lira crisis in 2021 that sent inflation to a 24-year high above 85% last year.
Amid the policy loosening, authorities redirected foreign exchange and tapped reserves to stabilise the lira - until the Wednesday selloff.
"We see the lira correction as a realisation on behalf of Turkish policymakers that its liberal use of reserves to defend the currency has run its course for now," said Erik Meyersson, chief emerging markets strategist at SEB.
He said the lira could reach 27 against the dollar by the end of the year. "This is a downward revision to the value of the lira that reflects expectations of authorities trying to control the lira somewhat less," Meyersson wrote.
The central bank's net forex reserves hit an all-time low of negative $5.7 billion as of June 2, data showed on Thursday, with demand having surged through the elections.
Traders have said reserves could enter an upward trend, but they highlighted the threat posed to reserves from payments due to be made under a government scheme that protects lira deposits against foreign exchange depreciation.
GRAPHIC-TRYing times: The slide and fall of the Turkish lira nL1N3800DY
Additional reporting by Jonathan Spicer; Editing by Gareth Jones, Daren Butler, Hugh Lawson and Emelia Sithole-Matarise
متعلقہ اثاثے
تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
