Stock Markets

Turkey lira at new low after rollback of bank rules

Published

2 years ago

June 26, 2023

ISTANBUL (Reuters) – The Turkish lira slid 1.8% to a fresh record low against the U.S. dollar on Monday after the central bank took steps to simplify rules governing lenders’ holdings and foreign deposits, following its sharp interest rate hike last week. The lira fell to 25.76 against the dollar, surpassing last week’s all-time low of 25.74. It is down 27% so far this year, largely after the re-election in late May of President Tayyip Erdogan who has since moved to backtrack on his years of unorthodox economic policy including slashing rates despite soaring inflation. Two big steps were taken in recent days: the central bank under new Governor Hafize Gaye Erkan raised rates by 650 basis points to 15% on Thursday, a substantial tightening even though it fell short of market expectations. Then on Sunday the central bank began rolling back parts of the dozens of rules and regulations it had adopted since 2021 that left debt, credit and forex markets heavily state managed – and that were meant to encourage lira holdings. The steps were meant to free up markets and ensure stability, the bank said at the weekend. According to the official gazette, the securities maintenance ratio that banks are required to allocate to their foreign currency deposit was reduced to 5% from 10%. Securities that banks must maintain ranged between 3% and 12% of their lira deposits, under the new standard, compared to between 3% and 17% previously. The new regulation also said banks whose lira deposits are less than 57% of total deposits will have to hold an additional seven percentage points of securities, compared to the previous seven additional points applied to banks which held less than 60% lira deposits.
“Ratios were slowly lowered, allowing banks to adjust their positions slowly and not triggering a rapid rise in interest rates, a slight relaxation of the rules would give banks room and time to maneuver about their bond portfolios,” said Enver Erkan, Chief economist at Dinamik Yatirim. “It is a comforting and positive development for the sector.”

Stock Markets

US anti-missile system in Israel used to intercept projectile from Yemen

Published

24 hours ago

December 28, 2024

(Reuters) – An advanced U.S. military anti-missile system was used in Israel to try to intercept a projectile for the first time since President Joe Biden placed the system in Israel in October, a source familiar with the matter told Reuters on Friday.

The THAAD, or Terminal High Altitude Area Defense system, was used to try to intercept a projectile from Yemen sometime during the last 24 hours, and an analysis would determine its success, said the source who spoke on condition of anonymity.

The Pentagon did not immediately respond to a request for comment.

Israel struck multiple targets linked to the Iran-aligned Houthi movement in Yemen on Thursday, including Sanaa International Airport, and Houthi media said at least six people were killed.

Houthis have repeatedly fired drones and missiles towards Israel in what they describe as acts of solidarity with Palestinians in the Gaza Strip.

© Reuters. FILE PHOTO: U.S. Secretary of the Army Christine Wormuth speaks near a Terminal High Altitude Area Defense (THAAD) missile and the Pac-3 Missile Segment Enhancement during the Association of the United States Army annual meeting and exposition at the Walter E. Washington Convention Center in Washington, U.S., October 14, 2024. REUTERS/Nathan Howard/File Photo

In October, Biden placed the THAAD system, built by Lockheed Martin (NYSE:), in Israel along with about 100 U.S. soldiers to help defend the country.

THAAD is a critical part of the U.S. military’s layered air defense systems and added to Israel’s already formidable anti-missile defenses.

Stock Markets

Senate intelligence panel criticizes CIA response to Havana syndrome

Published

24 hours ago

December 28, 2024

(Reuters) – A bipartisan Senate Intelligence Committee report published on Friday criticized the CIA’s response to so-called Havana syndrome health problems among its workforce, saying many individuals “faced obstacles to timely and sufficient care.”

© Reuters. FILE PHOTO: A vintage car used for touristic city tours passes by the U.S. Embassy in Havana, Cuba, November 10, 2021. Photo taken on November 10, 2021. REUTERS/Alexandre Meneghini/File Photo

A declassified summary of the panel’s classified report also said the spy agency’s response “negatively affected” those who reported symptoms, leading to a “trust deficit” among some personnel.

While the CIA provided benefits and compensation to many of those reporting symptoms, the report said, the ease of accessing those programs has been inconsistent, affecting how the agency has been organized to deal with the matter.

Stock Markets

Saba capital management buys $826,865 in Pioneer Municipal High Income Fund stock

Published

24 hours ago

December 28, 2024

Following these transactions, Saba Capital now holds 4,057,625 shares of Pioneer Municipal High Income Fund, reflecting its continued confidence in the fund’s performance. The fund currently offers a 4.53% dividend yield and maintains a conservative beta of 0.67, indicating lower volatility compared to the broader market. This move underscores Saba Capital’s strategy to enhance its position in the municipal bond market through this investment. InvestingPro analysis reveals several additional key metrics and insights about MHI’s financial health and market position.

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