·
CBRT to announce 2014 Monetary & Exchange Rate Policy @ 10am
local> Key will
be its game plan against depreciation on the ccy. CBRT had said it would peg
the 1-wk repo auction to TRY liabilities => details? => CBRT will likely
limit cheaper funding for every bank to a certain ratio of their TRY
liabilities. Currently CBRT provides a total TL 6bn of the 1wk repo. Meanwhile,
the CBRT sticks to its min FX sale auction> After selling $400m last
Friday & total $ 930m for the whole wk, CBRT stuck to its prev’ly announced
min FX auction size of $250m y’day. Min auction size is also @ same lvl today
but will decline to $ 50m tmrw (insert hair pulling scene). TRY u/p peer EMs by
2.6% over the last wk. If the CBRT gov repeats earlier rhetoric = “The
Committee assessed that the current stance of the monetary policy =>
appropriate to contain inflationary risks,” then expect to see further pressure
on ccy & rates.
·
EKGYO (NR) > Bought back 16.5m shrs (0.086% of free float, last 3m avg daily trading
vol 76.7m shrs) @ TL 2.14-2.15. Total cost @ TL 35.44m.