Cabinet finally announced

Putting everyone at ease, the cabinet of Turkey is finally announced. The announcement was taking so long that for one minute every single person in Turkey thought, “Am I on the list, too?” So many lists of cabinet were being shared on the internet from early in the morning until late at night that after a while people started to take the fake ones, which were prepared as a joke, way too seriously.

However, several decisions regarding the Institutions that manage the Monetary and Capital Markets were issued even before the announcement of the list. As set forth by these decisions, the President will also be able to assign one or several vice-presidents, including every vice-president post in the CBRT or Capital Market Board or even the Banking Regulation and Supervision Agency as well as in others.

“Better wait for things to calm down…”

It was indeed interesting that every TV station in Turkey has announced the cabinet list even before the official statement itself has been released. That’s why the negative impact of the decisions regarding regulatory institutions on USD/TRY pair went almost unnoticed. After all, people were getting tired of keeping track of the lists being announced back to back every hour.

So, USD/TRY reacted sharply to the announcement of the final and full list of cabinet. Falling back to almost 4.50 during the day, the pair started to climb up again towards 4.75 following the announcement. I am talking about a 3% increase compared to Friday’s close, and around a min/max 4.5% increase during the day.

This reaction of markets to the new cabinet should be interpreted as “This isn’t the list we’ve been expecting to see”. As you may imagine, I was bombarded with messages on social media right after the release of the cabinet list. My advice to you all, in case you ever face situations like this, is to keep your cool and give it time.