Critical decision from global finance giant: UBS removes TL from its investment list

Swiss-based financial giant UBS has stated that it will no longer publish a report on the Turkish lira and that investors should not take into account its recently published Turkish lira recommendation reports. Tilmann Kolb, an analyst at UBS, has published a customer note stating that they will no longer publish a report on the Turkish lira and that investors should not take into account the recent Turkish lira recommendation reports they published earlier.

UBS analyst Kolb had published a report in late November saying devaluation in the Turkish LIRA reflected the view that the current monetary policy framework was insufficient to combat inflation, and therefore they did not rule out the possibility of further depreciation.

USB went on to say,  “Our current forecasts are based on the assumption that policymakers will react to the depreciation of the currency. However, they can maintain their commitment to the current policy. This may lead to further depreciation” adding that they expected the dollar / TL to reach 10.2 in the first quarter of 2022 and 10.8 at the end of 2022.

On October 5, UBS published a report on the expectation of the Central Bank of the Republic of Turkey and stated that they expected the CBRT to reduce interest rates by another 50 basis points to 17.50 percent by the end of 2021.

Source: (halktv.com.tr/ekonomi/finans-devi-ubsden-kritik-turk-lirasi-karari-hem-yatirim-listesinden-cikardi-656458h)

Editor’s note: However, as of today (13 December 2021) dollar TL rate has already seen 14.75 level – which is not good news apparently.