Economists at Credit Suisse review measures adopted by Turkish authorities to de-dollarize the corporate sector. The latest stability in USD/TRY looks likely to continue for a while.

In the absence of an obvious trigger, peg-like stability is likely to persist

“Over the past week, Turkish authorities adopted a series of measures aiming to de-dollarize the corporate sector and boost central bank reserves. These measures are consistent with the idea that USD/TRY is set to stabilize in a peg-like manner below the 15.00 mark for longer than we previously envisioned.”

“In the absence of an external shock (such as another substantial rally in oil prices), we now expect a re-pricing in USD/TRY towards 16.00 to happen only in the late part of Q2.”