May 30, 2022
The Turkish lira saw its lowest level of the year while carrying its losses against the dollar to the eighth day.
CDS is still rising, reaching new highs not seen since 2008.
The risk premium in Turkey has risen to its highest level since the global financial crisis.
On the day, the 5-year credit default swap (CDS) gained 714 basis points. This is the highest level of the risk premium since October 2008. Turkey’s risk premium was 832 basis points in October 2008.
While Turkey’s risk premium was increasing, the Dollar/TL exchange rate was also increasing. The cost of the dollar against the Turkish lira has gained close to 1%, testing the level of 15.63.
Source: Bloomberg
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