After a slight deceleration in the circulation of the epidemic, the number of cases of contamination has accelerated in recent weeks in Turkey (between 25,000 and 30,000 new daily cases and more than 150 deaths per day), pushing the Turkish authorities to reinstate measures of targeted containment. Among these measures, partial travel restrictions, limitation of the opening hours of shops, the closure of certain shops, the call for mass teleworking or the return of distance education have been applied. Details of the measures put into practice are available at the bottom of this note.
On the economic front, following the replacement of the governor of the Central Bank on November 6 and the resignation of the Minister of Treasury and Finance the following day, the President presented the beginnings of an economic change, submitted as an "opportunity for foreign investors". The foundations of this new economic strategy will be based on price stability, financial stability and macroeconomic stability. With this, an acceleration of structural reforms will be implemented by the Turkish authorities who intend to closely collaborate the Ministry of Finance, private actors and foreign investors.
Determined to stem inflation by implementing a very restrictive monetary policy, the new governor raised, a few days after his appointment, the main key rate by 475 basis points, from 10.25% to 15%, the biggest increase in two years. The Issuer has also announced a simplification of its monetary policy: the repo rate is once again the main refinancing rate. These developments were well received by the markets which welcomed these changes of a revaluation of the Turkish lira against the euro and the dollar.
In addition, Turkey's economic indicators are gradually picking up colors, despite the omnipresent health crisis and tourism hit hard: the country posted a growth of 6.7% in the third quarter of 2020, a figure above the expectations
Read the newsletter (in French) - Novembre 2020