Emerging Markets Rates and Currencies Handbook

https:/ /www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB +EN/Main+Menu/Core+Functions/Exchange+Rate+Policy FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Market   ✗   ✗  Offshore Market   ✗   ✗  Onshore Volume (MM USD Daily) 200 - 3,000 1,000 - 2,000 N/A* 50 - 100 20 - 40 N/A 20 - 40 Offshore Volume (MM 500 - 1,000 200 - 1,000 N/A* 100 - 700 40 N/A 40 USD Daily) Onshore Max Tenor (Or Typical Tenor T+1 2 years N/A 5 years 10 years N/A 10 years For Spot) Offshore Max Tenor (Or Typical Tenor For Spot) USDTRY: T+1 EURTRY: T+2 up to 2 years N/A up to 5 years up to 10 years / average 3 - 5 years N/A up to 10 years / average 3 - 5 years Onshore Typical Deal Size (MM 2-10 3-5 N/A 3-5 2-5 N/A 2-5 USD) Offshore Typical Deal Size (MM 2-10 3-5 N/A 20-50 5 (1yr) N/A 5 (1yr) USD) CitiFX Pulse Capabilities   ✗  ✗ ✗ ✗ * Central Bank conducted auctions for NDF contracts between 2017 Nov till 2018 November for the local banks. Currently there is no such auction. Volumes specified in the table show the picture of 2023 and they reflect pre-election conditions so they are below market average numbers when compared to previous years. We would expect a spike in the volume in line with normalization of the markets. Few broker prices but does not trade often enough to give an idea of Daily Market Volume. Interest Rate Swap has started in 2022 after the initiation of OIS market. Source: Citi indicative information Market opening hours and liquidity during the day The FX market is open 24h on business days. But the liquidity is relatively more abundant between 10.00 — 16.00 (local time). Central Bank Indicative exchange rates (incl. ticker) Central Bank of Turkiye announces indicative exchange rates at 15.30 Turkiye time on each business day. Exchange rates determined by the method, can be reached on following address https: //www.t cmb.gov.tr/wps/wcm/connect/EN/TCMB +EN/Main+Menu/Core+Functions/Exchange+Rate+Poli cy/Foreign+Exchange+and+Banknotes+Markets/Indicati ve+Exchange+Rates. The client can see this rate on CBTA Reuters page after 15.30. On Bloomberg, from TCMB page, choose 21) FX indicative rates. These rates are not binding on any institution and cannot be used for fixing sales exchange rates purposes. Regulation Non-Resident Restrictions: Non-resident entities are permitted to transact FX with a resident bank. For Spot dealing no master agreement required. For FX swaps, FX forwards, FX options, local master agreement between the company (either resident or non-resident) and the bank should be in place. Offshore Restrictions: Resident entity is permitted to transact FX with a non- resident entity. Subject to few regulative rules, but no restriction. A non-resident entity can trade TRY with other non-resident entities subject to their jurisdiction’s regulations. Non-resident banks are not allowed to market any product in Turkiye. Resident companies may contact non-resident banks on non-solicited basis.