Türkiye’s risk premium hits the lowest level since 2020, Finance Minister Simsek announces
The Credit Default Swap (CDS) has dropped by 435 basis points since May last year, hitting its lowest level since February 2020 at 268 basis points
Finance Minister Mehmet Simsek has revealed a significant decrease in the country’s risk premium, as indicated by the Credit Default Swap (CDS), marking a notable improvement in financial indicators.
Finance Minister Mehmet Simsek has announced that the CDS, which reflects the country’s risk premium, decreased by 435 basis points compared to May 2023.
Simsek further revealed that the CDS has fallen to 268 basis points, marking its lowest level since February 2020.
“The Turkish Central Bank’s gross reserves have surged to $134.4 billion, with a notable improvement of $42 billion in net international reserves excluding swaps over the past one and a half months,” Minister Simsek said.
Simsek reiterated the success of the economic program, emphasizing the positive trajectory of financial metrics in a social media post from account X.
Underlining the continuous decline since August 2023, Simsek noted a 36% reduction in Currency Deposit Insurance Fund (KKDF) reserves, amounting to a nominal decrease of ₺1.2 trillion.
Moreover, during this period, Turkish lira deposits saw a 14-point increase in their share of total deposits.
Minister Simsek emphasized that the favorable outcomes of the program, coupled with increasing confidence and reinforced financial stability, will significantly contribute to combating inflation.
Source: Newsroom
