Warning of high inflation and volatile exchange rate from S&P to Turkey

The credit rating agency Standard & Poor’s (S&P) carried out evaluations on emerging economies.

The assessment, which indicated that there was a change in monetary policy settings after the elections in Nigeria and Turkey, said: “This is a change that we believe could help them rebuild their foreign exchange (FX) reserves and limit retail foreign exchange”. demand for change.

“At the same time, policy makers in both economies may have to deal with high inflation and currency volatility for a long time,” the statement said.

EXPLANATION ABOUT RESERVATIONS

In the assessment, it was stated that the change in monetary policy in Turkey may again contribute to the increase in foreign reserves.

“Credit conditions are stabilizing in middle-income commodity-importing economies, including Hungary, Poland and Romania, albeit with higher interest rates,” the statement said, noting it showed improvement thanks to more clarity.

Emphasizing that middle-income economies showed macroeconomic resilience despite weaker data from China, the statement said: “The financial area remains insufficient (in these economies). The cost of new loans is higher than two years ago, especially for countries with low credit ratings. (AA)