turkish lira depreciation

Turkey’s embattled lira is expected to continue depreciating but no repeat of a currency crisis in 2018 is expected, said analysts at MUFG Bank, Japan's largest lender. The weakening trend was mainly caused by high and rising inflation and the absence of a response from the central bank amid increased pressure from Turkey president Erdogan to prevent any more rate hikes.

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Turkey’s embattled lira is expected to continue depreciating but no repeat of a currency crisis in 2018 is expected, The lira will weaken at least until the Turkish authorities establish credibility on stabilising inflation, the analysts said, currency news website FXStreet reported on Thursday.“There are greater restrictions in place now on trading TRY and hence the scale of TRY turmoil witnessed in August 2018 is unlikely to be repeated,” they said. While the USDTRY spot exchange rate is quoted and exchanged in the same day, the USDTRY forward rate is quoted today but for delivery and payment on a specific future date. The USDTRY spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the TRY. “But the direction of travel is clear and we maintain out view of continued gradual TRY depreciation going forward.”The lira hit 7 per dollar on Thursday, its lowest level since early May, when it fell to an all-time low of 7.269 against the U.S. currency. “Turkey’s current account position turning to deficit with one of the largest negative real yields is a recipe for currency depreciation.” Business Why the Turkish lira is in free fall . © copyright Ahval 2017-2020 Turkey’s currency depreciated to an all-time low of 7.4 against the dollar on Monday as the global recession created by the coronavirus pandemic highlighted weaknesses in the country's economy. The lira will weaken at least until the Turkish authorities establish credibility on stabilising inflation, the analysts said, currency news website FXStreet reported on Thursday. 1992-2020 Data | 2021-2022 Forecast | Quote | Chart | Historical | NewsDownload historical data for 20 million indicators using your browser.Direct access to our calendar releases and historical data. Over the last few days the depreciation of the Turkish lira accelerated and it dropped to a new record low versus the dollar. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Rumors of renewed lira depreciation ahead of the election board's announcement has also prompted many in the country to buy foreign currencies, putting further pressure on the lira…

The Turkish currency has hit record lows against the euro and US dollar, despite efforts by its central bank to stop the rot.

Earlier this week, the central bank said the level of interest rates was sufficient to slow inflation to a target of 8.9 percent by the end of the year from 12.6 percent in June. The benchmark interest rate stands at 8.25 percent, meaning real rates are negative.The MUFG analysts said a boom in lending, led by state-run banks, was driving lira weakness.“With the aggressive push for credit into the real economy investors are also anticipating a deterioration in Turkey’s current account position,” they said. The US dollar climbed in Turkey back to the 7.00 area; it is the highest level for USD/TRY since May. An episode resembling to that of today had happened in 1994 during which Tansu Çiller was the prime minister, who was just another conservative political leader, and thanks to the right contractionary policy followed by the CBRT at that period depreciation of the Turkish lira was bearable in 1994.