Have a look at the picture below, where I have graphed the bid and ask rates for the overnight, compliments, as always, of my friends at Turkey Data Monitor:
Can you guess why the overnight has plunged two times? Is there anything particular about those times/dates?
I will be posting the answer as a comment to the post when the hour strikes midnight... Just trying to put a bit of spice to the blog; feel free to post your answer as a comment to the post...
Posts
4 comments:
I like this game. Here are my guesses:
09 Dec 2012 - I guess it is related to the "egg incident"
23 Dec 2012 - I am not too sure. This is related either to the Armenian bill in the US or the ECO Summit.
Good guesses, but no. It is actually much simpler: Those are the last days to fulfill the reserve requirements (14-day periods).... Then, you may wonder why it wasn't like that before: Because they were not as much borrowing from and lending to each other. The CBT's cutting down its borrowing and raising its lending rates have made dealing with the Bank a really bad deal...
I knew that one, just did not check the blog on Monday!Shame...
One question though: I believe the CBT might have supplied less liquidity on those particular days, which would limit volatility.
However it chose not to in order to show the market that it means business.
Am I right about this ?
Great blog by the way,perhaps the only proper bloglike blog on Turkish economy and financial markets.
I'm hoping to comment a lot more in the future.
AliG
@Kidneythief/AliG: Thanks for the comment & the kind words...
As for your question, I answered it as a blog post, as I cannot post graphs here:
http://emredeliveli.blogspot.com/2010/12/addendum-to-mondays-riddle.html
Best,
Emre
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