Before President Recep Tayyip Erdoğan’s new cabinet, which will be announced on Saturday evening, Goldman Sachs drew attention to the different pricing in the exchange rate and bond markets.
In the report published by Goldman Sachs analysts Kevin Daly and Clemens Grafe, it was said, “Considering that the significant exchange rate loss poses a tangible risk for Turkish Currency-denominated bonds, it continues to surprise us not to see that the foreign exchange forward markets are priced in the foreign currency bond market.”
After the election, the Dollar/TL reached new record levels, while the 5-year CDS continued to decline.
Turkish dollar-denominated bonds are also rising in anticipation of Erdogan’s announcement to the “market-friendly” cabinet.
Bloomberg: Şimşek will be plenipotentiary Treasury and Finance Minister
According to Bloomberg’s report, Mehmet Şimşek will take place in President Recep Tayyip Erdoğan’s new cabinet as the “Fully Authorized Minister of Treasury and Finance” and will undertake all the harmonization related to economics.
According to the information provided by the authorities to Bloomberg, Mehmet Şimşek wanted to take on an executive duty instead of the Vice President formula, which was frequently brought to the public agenda this week. Thereupon, it was decided that Şimşek would enter the cabinet as the Minister of Treasury and Finance. Despite this, Şimşek will be “full authority” in economic policies.
Source: Bloomberg HT