Jakarta, CNBC Indonesia – The Istanbul, Turkey stock exchange temporarily suspended trading or suspended trading on Monday (22/3/2021). This happened at around 9.05 local time.
The main index of Borsa Instanbul has collapsed by more than 16%. This was the result of Naci Agbal’s dismissal from his position as Governor of the Central Bank of Turkey, who has been known to be a market-friendly figure.
Even so, trading resumes at 10.30. But it will be stopped again if the decline continues.
Previously, Turkish President Erdogan replaced Agnal, who had only served for 3 months. He was replaced by Sahap Kavcioglu, who was pro to lower interest rates.
This angered investors and led to the decline in the lira. The Turkish currency even dropped 12% overnight.
“This is a completely idiotic decision by Erdogan and the market will express their opinion on Monday, and it will likely be a bad reaction,” said Timothy Ash, an analyst at BlueBay Asset Management. Financial Times.
Since being appointed in November, Agbal has raised its benchmark interest rate by a cumulative 875bp to 19%. This helped the lira recover as investors saw signs that Turkey was moving towards a more orthodox monetary policy.
But it contradicts Erdogan’s view that higher interest rates cause, not cure, inflation. He demanded that credit remain cheap to boost economic growth, fuel double-digit inflation over the past three years and encourage foreign investors to dump Turkish assets.
(boss / boss)
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