Intervention by the Turkish central bank leads to emerging markets currencies to rally

January 29, 2014 by Nanakiver3
  • Big moves higher for all emerging market currencies.
  • USDZAR falling on the back of the move from Turkish central bank.
  • The lending rate raised to +425bp to 12% against a 225bp raise expected.
  • The repo rate and borrowing rate were expected as unchanged and raised  550bp and 450bp.
  • The liquidity rate was raised to 15% from 10.25%

USDZAR falls overnight

  • Above we can see the effect on the USDZAR.
  • Below we can see the correlation between the ZAR and the CAD, if this is good news, we may just see some reprieve for the CAD’s recent decline.