Goldman Says Key Istanbul Vote to Have Positive Impact on Lira

A pedestrian passes an electoral poster displaying Republican People's Party (CHP) candidate Ekrem Imamoglu in Istanbul on March 25.Photographer: Yasin Akgul/AFP/Getty Images
A pedestrian passes an electoral poster displaying Republican People's Party (CHP) candidate Ekrem Imamoglu in Istanbul on March 25.Photographer: Yasin Akgul/AFP/Getty Images
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Goldman Says Key Istanbul Vote to Have Positive Impact on Lira

A pedestrian passes an electoral poster displaying Republican People's Party (CHP) candidate Ekrem Imamoglu in Istanbul on March 25.Photographer: Yasin Akgul/AFP/Getty Images
A pedestrian passes an electoral poster displaying Republican People's Party (CHP) candidate Ekrem Imamoglu in Istanbul on March 25.Photographer: Yasin Akgul/AFP/Getty Images

Goldman Sachs Group Inc. analysts believe that the high-stakes municipal vote in Istanbul on Sunday will have a positive impact on the Turkish lira, amid increased pressure on the currency because of revived demand for hard currency this month.

The race in Istanbul, the nation’s most affluent city, is watched closely by markets and investors because it’s symbolic of a broader political battle between the opposition and President Recep Tayyip Erdogan.

“It should be positive for the Turkish lira, provided that the results are not contested in Istanbul or in other major cities,” said the analysts led by Kevin Daly. The Istanbul election in 2019 was challenged by the ruling AK Party and the vote was repeated. Incumbent Mayor Ekrem Imamoglu, viewed as Erdogan’s most formidable political opponent, won at the time. He’s seeking to maintain his seat in Sunday’s vote, according to Bloomberg.

Turkish locals have flocked to hard currency this month on concerns that the lira could face a sharp depreciation after the vote, causing a drain in the central bank’s FX war chest. A worse-than expected inflation print last month also contributed to pressure on the currency, which has lost 9% of its value against the dollar so far this year.

While Türkiye is prone to policy swings, Goldman analysts don’t think the election outcome will cause a shift in the current monetary and fiscal policies. They expect pressure on reserves and the lira to subside after the vote and see the central bank maintaining tight policy.

The Turkish central bank’s unexpected 500bps rate hike that lifted the benchmark to 50% last week “sends a strong signal that such a devaluation is unlikely,” said the Wall Street bank.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.