The Turkish Lira appears to be still heavily “managed” by policymakers. Economists at Commerzbank analyze TRY’s outlook.

Credibility a long, arduous process

The Turkish Lira stabilised to some degree after the newly appointed economy management team announced a return to conventional monetary policy and hiked rates sharply. But, despite verbally supporting this tightening, President Erdogan also expresses some contradictory views, which keep the market uncertain about his support. 

We retain our USD/TRY forecast for the end of the year at 30.00.

Source: Commerzbank Research