BNP raporundan:

Local FX deposits approach previous peak
Local FX deposits approached their previous peak reached back in April 2016, after a sharp USD 3.6bn increase in the week ending 28 April. So locals bought a massive USD 17.4bn since mid-January this year as TRY remained on appreciation path. We estimate that the weighted average cost of these FX purchases is 3.7720, as measured with the basket TRY (0.5 USDTRY + 0.5 EURTRY). This corresponds to 3.60 USDTRY and 3.94 EURTRY levels. We expect locals to slow down their FX purchases from here and they are more likely to sell FX, especially if the currency rates rise above these average cost levels in the upcoming period. Bearing in mind
that the short-term carry is one of the highest in EM space, we think TRY will be more protected against global headwinds in the short-term, as long as the CBRT sticks to its tight monetary stance.