Today’s Trading Playbook
KEY THEMES
Turkish lira (TRY) continues to exhibit wild and volatile swings, post its all-time low recorded last week. Since then, the TRY rebounded by around 30% in response to governmental plans which will include a protection of citizens’ savings from TRY fluctuations. According to the announced plan, the government will compensate for losses endured by holders of TRY deposits in the event of TRY weakening exceed interest rates promised by banks.
We discussed here before in our trading playbook dated 19 December 2021 in a quick glance the initial repercussions from TRY slippage on Egypt’s economic conditions. This morning, we published a note which close down in more detail how the recent movements of TRY will play out for the economy here at home. In our note, We discuss the expected impact from TRY volatility will be limited to three main areas: (1) Capital inflows, (2) Financial stability, and (3) Trade linkages. For more details please check our note here.
Now, on to the top news and analysis for the day.