Daily Bulletin

Good morning. Global stock markets are starting the new week with a slightly positive sentiment. Domestically, political developments that have been referred to the judiciary are being closely monitored, along with decisions and statements from key financial authorities such as the CBRT, CMB, Borsa Istanbul, and other economic policymakers. The most notable developments include: i) The CBRT's decision to issue liquidity securities with maturities of up to 91 days, starting today, as part of its liquidity management strategy. ii) The CMB's decision to ban short selling until the end of the trading session on April 25, facilitate share buybacks for publicly traded companies, and apply a more flexible approach to equity capital ratios in leveraged capital market transactions. iii) Borsa Istanbul's decision to reduce the order-to-trade ratio (OTR) in the equity market from 5:1 to 3:1 until the end of the trading session on April 25, 2025, while increasing the threshold breach fee for order-to-trade ratio violations from 0.25 TL to 0.50 TL. These measures aim to stabilize the high volatility in financial markets; however, it may take time for risk appetite to shift back in favor of TL-denominated assets. Market estimates suggest that the CBRT used between $20–25 billion in reserves last week to control exchange rate volatility. A more precise assessment will be possible after the release of the CBRT's Analytical Balance Sheet today at 14:00. Excessive reserve utilization could increase fragility in the Turkish lira. On today's agenda, PMI data from Europe and the US are in focus. Turkey’s 5-year CDS premium starts the day at 327 basis points.