By Muhammed Said Tanil
ISTANBUL (AA) - Türkiye's five-year credit default swaps (CDS) fell below 400 basis points despite the ongoing geopolitical risks, as measures taken by the country’s new economy administration to ensure price stability are being gradually implemented.
While the Türkiye's fight against inflation continued strongly, its CDS – a form of insurance for bondholders – fell below 400 basis points for the first time since Oct. 13 and stabilized at 398.5 basis points.
Last week, the Turkish Central Bank hiked its policy interest rate by another 500 basis points to 35%, meeting the market forecast.
Over the course of five monetary policy meetings, the bank has been gradually increasing the rate, also known as the one-week repo auction rate, from 8.5% in May to 35% this month.
"The Committee decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible," the bank stressed.
Meanwhile, it is stated that Treasury and Finance Minister Mehmet Simsek has been receiving positive signals from the meetings with foreign investors.
During his speech at a parliament session held on Tuesday to discuss the 2024 budget, Simsek said that as of October, nearly $7.1 billion of external financing was provided for project financing.