• USD/TRY to reach 30.00 by year-end – Commerzbank

Noticias del mercado

10 agosto 2023

USD/TRY to reach 30.00 by year-end – Commerzbank

The Turkish Lira still appears to be kept stable by policymakers. But, rate hikes have lagged market expectations and inflation has begun to re-accelerate. Subsequently, economists at Commerzbank have revised up their USD/TRY forecast.

Inflation-FX spiral may have restarted

The current set of policies cannot be viewed to have resolved longstanding problems or restored central bank credibility.

As inflation re-accelerates, the outlook for the real interest rate will deteriorate, which will further intensify exchange rate depreciation – this is the familiar inflation-FX spiral – the reason why we significantly weakened our lira forecasts in the election aftermath. 

We revised up our USD/TRY forecast path significantly, with a target of 27.00 for September 2023 and 30.00 for end-2023.

Source: Commerzbank Research

 

 

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