BBVA, dragged by the Turkish lira to the tail of the Ibex 35

The value of the Turkish lira accelerated its fall this Wednesday morning, until it reached a new minimum, given the prospect that the new economic team of the Government, led by the Minister of Finance, Mehmet Simsek, assumes a more orthodox position and withdraws some currency support measures.

In this way, the dollar exchange came to strengthen up to 22.3425 liras from the close of 21.5475 liras of the Tuesday session.

Since Recep Tayyip Erdogan’s electoral victory in the second round of the presidential elections on May 28, the ‘green ticket’ has appreciated almost 12% against the lira.

And it is that the analysts are clear: the re-election of Erdogan as president of Turkey anticipates five more years of “disorderly adjustment” of the country’s economy, according to the Scope rating agency, and of “double-digit” and “lax” inflation. monetary policies,” according to analysts at CreditSights. “Turkish banks are expected to post much lower profits in 2023 as President Erdogan’s re-election signals the continuation of unpredictable policy in the banking sector that has disrupted lenders’ business models,” says S&P Global Market Intelligence. . guaranteethe Turkish subsidiary of BBVA, is one of the entities most affected.

This Wednesday, BBVA is the value that falls the most within the IBEX 35. It seems that the bank’s exposure to Turkey continues to be disliked by the market and at this time BBVA lost almost 1.4% to 6.36 euros.

For their part, Citi and Bankinter analysts stress that the stock market punishment of BBVA after Erdogan’s victory is “excessive”. The American bank’s experts reiterated their advice to buy the stock and noted that “the potential risks posed by its exposure to Turkey are overpriced.” This same week, Citi once again reiterated its commitment to BBVA.


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