Last minute: Dollar price The market was deeply shaken by the currency limitation on TL commercial loans announced by the BRSA. The Turkish lira appreciated by more than 4% against the dollar / TL in minutes. It fell hard against the Turkish lira. Eyes were on today for the decision that came after the market closed on Friday. So, will the dollar / TL rate go down? will it go up? Here are the last minute developments in the markets …
In the week we left behind, the CBRT interest rate decision emerged on the domestic market, with US Federal Reserve (Fed) Chairman Powell’s presentation to the US Senate on the spotlight. monetary policy. In his Senate speech, Powell said he feels it is appropriate to continue interest rate hikes, that inflation surprises on the upside, and that there may be more surprises, so you need to be agile in responding to upcoming data and developments in the economy. prospect. By stating that the US economy is very strong, Powell assessed that the economy is capable of coping with tighter monetary policy. Powell said there is a possibility of a recession, but this is not a desired outcome.
Global markets followed a mixed pattern during the week with growing recession fears. While oil prices began to decline due to recession fears, Brent oil fell to $ 107 a barrel during the week.
DECISION OF INTEREST OF THE CENTER
The CBRT kept the benchmark rate unchanged at 14 percent, in line with expectations, at the June MPC meeting. The text of the resolution stated that the disinflationary process will begin with the restoration of the global environment of peace and the elimination of the basic effects of inflation, together with the measures taken and with determination implemented to strengthen sustainable price stability and stability.
DOLLAR DOWN DOLLAR AFTER THE BRSA DECISION
Starting the week above the 17.30 limit, Dollar / TL rose to the 17.54 level during the week, while Euro / TL tested the 18.60 limit. However, a very critical step was taken on Friday for the markets and the Banking Supervision and Regulation Authority’s (BDDK) foreign exchange restriction for TL business loans to businesses shook the market and exchange rates. After the new decision announced by the BRSA, the dollar depreciated by more than 4 percent against the Turkish lira. The exchange rate fell from Lire 17.38 to Lire 16.48.
The exchange rate started the day at 16.12 lire, 4.5 percent lower than the close on Friday. The Euro / TL exchange rate at 17.05 lire in the same minutes is also appreciated.
THE PERSPECTIVES CHANGE IN THE EXCHANGE OF THE DOLLAR
Commenting on the decision, analyst Tuncay Turşucu commented on the effect of the decision on the dollar rate: “The dollar / TL rate, which fell after the BRSA statement on Friday evening, rose again and closed at 16.88. In case the Dollar / TL remains below the 22-day average of 16.90, a decrease towards the 50-day average of 15.95 can be seen. However, these levels may not be permanent and may receive upward reactions again. If the exchange rate falls below the average of 16.90, we could see horizontal fluctuations between 15.95 and 16.90 for a while. ”
Economist Murat Özsoy, on the other hand, said the drop in the foreign currency exchange rate was temporary and said: “If we look at the process through the end of the year, these levels will not go beyond being stable, but only provide new short-term buying opportunities. “