Fund Crisis in Capital Markets and Reserve Sales Evaluated in Economic Analysis
The economic impacts of the fund crisis that emerged in the capital market following global crises and a period of high inflation were analyzed.
While the fund crisis, brought under control through stringent measures by economic management, was prevented from spilling over into the banking sector, the reserve sales experienced during this process and their reflections on the market were evaluated.
Effects of the Fund Crisis on the Market
A fund crisis was added to the capital market on top of the global energy crisis driven by war, interest rate hikes, and high inflation problems.
The crisis, which flared up last week when a fund failed to make its payments and caused panic in the markets, was brought under control through liquidity measures taken by the economic management.
Dimensions of the Crisis and Measures Taken
This crisis, encompassing five hundred thousand individual investors, approximately 900 billion liras, and a size of 131 funds, was prevented from spilling over into money markets and banking.
How much of their money participants will be able to recover and the process of repairing the damage in the stock market will become clear in time.
Change in Central Bank Reserves
Another effect of the fund fire was clearly seen in the Central Bank reserves.
While a reserve sale of five billion dollars was detected on Wednesday when the fire flared up, it is estimated that a total reserve melting of 3.5 billion dollars may have occurred on Thursday and Friday.
Production and Global Economic Risks
While data regarding September show that stagnation in production and sales continues, complaints from the business community are growing, and the belief that inflation and interest rates will drop is weakening.
Globally, the policies of the FED, high oil prices, inadequate energy stockpiles, increasing sovereign indebtedness, and the risk of an artificial intelligence bubble negatively affect the fragile structure of Turkey's economy.