A first in 3 years: Turkey's risk premium falls below 350 basis points

Turkey's 5-year credit risk premium (CDS) has fallen below 350 basis points for the first time in approximately 3 years, reaching the 348.2 level.

Turkey's CDS, which was at the 700 basis point level in May, has declined by approximately 350 basis points over the last six months to fall below the 350 basis point threshold.

Following the remarks by CBRT Governor Hafize Gaye Erkan in the latest Inflation Report presentation, which demonstrated a commitment to the fight against inflation, the decline in Turkey's CDS accelerated once again, dropping to around 365 basis points on Friday, November 3. Continuing its downward trend, the CDS is currently at 348.2 basis points today.

The decline in CDS, which also reflects foreign investor interest in Turkish lira assets, continues alongside the CBRT's decisive steps toward establishing disinflation despite ongoing geopolitical risks, Turkey's continued efforts to increase access to external financing, and positive signals from meetings held with foreign investors.

News Source: AA