Turkish Lira is the most valued currency against US dollar
Turkish Lira has a strong performance since the beginning of 2021. The US-based newspaper Bloomberg brought this rapid appreciation of the TL to its agenda. The newspaper stated that the Turkish lira was the most appreciated currency against US Dollar in its article as “World-Leading Lira Rally Turns Bank Analysts Into Bulls”. Since President Recep Tayyip Erdogan renewed his economic policy team in early November, the currency has decreased 23 percent. This change bolstered investor optimism regarding the Middle East’s largest economy.
TL/US Dollar will increase 7% more
Experts from Societe Generale and HSBC predicted that the appreciation is not yet over and will continue. They stated that the US dollar/TL would be 6.5 by the end of the year, indicating a 7 percent increase in value from the current level. The recent rate hikes and the possibility of inflation staying in double digits have been supporting the bull market.
According to a report by Goldman Sachs Group, Central Bank Governor Naci Ağbal pointed to raise central bank reserves again. According to the report, this was a commitment to alleviate concerns about early rate cuts.
Morgan Stanley: Turkish lira could gain more than expected
The giant bank of US, Morgan Stanley stated that the dollar will continue to lose value against the TL. The US investment bank Morgan Stanley stated that the Turkish lira could gain more than expected and the US dollar/TL could fall to 6.80 Turkish lira. After the change in the economic management in November, the bank reminded that the dollar was predicted to decrease to 7 Turkish Liras and now it was stated that there is a possibility of falling below this level.
British-based Oxford Economics announced that for China and Turkey has a strong economic recovery after the side effects of the pandemic to the economy.