1/ Patiently waiting for the reaction of fx markets to the sacking of #Turkey's central bank governor Naci Agbal.
His successor has some funny ideas: “interest rate increases will indirectly lead to an increase in inflation”.
His successor has some funny ideas: “interest rate increases will indirectly lead to an increase in inflation”.
2/ Will there be a crash of the Turkish lira tomorrow? Probably yes! But markets did not react to the appointment of Uysal in 2019 and rather slowly to his rate cuts. I am still pretty sure, the lira will depreciate strongly though.
https://twitter.com/jeuasommenulle/status/1373669161923190787
3/ Furthermore, markets reacted with a little bit too much confidence in the ability of Agbal to bring down inflation and stabilize the liras value. While he was successful, it is still Erdogan who is the man in charge ultimately and he likes his rates low
https://twitter.com/RafaelMentges/status/1325804487714500608
4/ I think the departing governor Naci Agbal summarized it pretty well yesterday: "May God grant us all good luck.” (Though I am not sure how he meant that).
By the way, here is another great piece on the topic by @aylajean.
on.ft.com/3r8NUW3
By the way, here is another great piece on the topic by @aylajean.
on.ft.com/3r8NUW3
Here it is. #TurkishLira on its way back to its pre-Agbal trend.
https://twitter.com/RobinBrooksIIF/status/1373764687909826562
With a similar crash against the euro.
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