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Sanctions On Turkey May Be Too Little Too Late - Local Analyst

TURKEY

Local news

  • Despite this morning's increase to swap limits, local analysts expect CBRT to ease limits on lira swaps and derivative deals that local banks can carry out with foreign counterparts as the next move towards monetary policy orthodoxy - but provide no timeline.
  • Warn that the unwinding of swap restrictions risks boosting FX reserve volatility at the CBRT which could weigh on market sentiment.
  • Hopes a plan can be designed to gradually roll back restrictions while conducting FX purchases to replace the swaps - Ahval
  • Political Analyst says EU foot-dragging is emboldening Erdogan in his aggressive regional stance as he tests the boundaries of his power in a Putin-style approach to see what elicits a strong EU response.
  • Warns sanctions measures expected to be discussed/decided on 10 December may be too late or largely ineffective in confining Erdogan's regional aggression - Ahval
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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