Türkiye's 5-year credit default swaps at 5-year low

ISTANBUL

Türkiye's five-year credit default swap (CDS) fell to its lowest level since February 2020.

Türkiye's CDS -- a form of insurance for bondholders -- dropped to 240 basis points on Wednesday.

During the last year, it hovered between 242 and 370 points, while it saw an 840-point level in 2022.

Türkiye has been growing uninterruptedly for the last 20 quarters, while the country has also seen a decline in inflation.

Interest in Turkish lira assets continues to grow as the disinflation process underway domestically progresses positively.

The CBRT's entry into a cycle of interest rate cuts has also contributed to increased risk appetite in key domestic markets in the fight against inflation.

The CBRT's total reserves reached $180 billion last week, the highest level ever.

These developments continue to fuel foreign interest in Turkish lira assets, while Türkiye's borrowing costs are also declining.