Capital Economics Shared its USD/TL Forecast
Capital Economics shared its USD/TL forecast. The institution announced its expectation that the appreciation in TL will continue.
In the report prepared by Jason Tuvey from Capital Economics, it was noted that the appreciation of Turkish Lira will continue in case the current monetary policy continues.
The said report of Capital Economics consisted of the expectations of the institution regarding the Turkish Lira. The report in question made the following statements:
“The return to orthodox policies of the Central Bank supported the rally in the lira. If the policy is adhered to, which is highly possible, the increase in the currency may continue. Our year-end forecast in USD/TL is 7. If this happens, TL will have experienced an annual valuation for the first time since 2012.”
We Don’t Think Erdogan is Giving Up
In the report, “We do not think that Erdogan gave up his views on economic policies,” statements took place, it was noted that if the recovery slows down, inflation remains high and the Turkish Lira is suppressed again, President Erdogan may feel that “orthodox policies are not working”.
According to the report, the institution’s year-end USD/TL rate estimate was around 7.0.