Dollar Gains Value in Global Markets

While the dollar experienced an increase in global markets, the USD/TL exchange rate turned its direction up in Wednesday's transactions.

The dollar gains value in global markets. Dollar/TL, on the other hand, started to rise after following a horizontal motion in the first transactions on Wednesday. All attention on domestic markets turned to the Central Bank of the Republic of Turkey (CBRT) meeting to be held on Thursday. The Turkish Lira has been appreciating against the dollar since the beginning of the week. In the middle of the week, he suspended his rally as the dollar rose in global markets. The USD/TL rate, which saw below 6.90 in Tuesday's transactions, rose above the level of 7.00 again today. A significant portion of the currencies of developed and developing countries in global markets depreciated against the dollar. The Bloomberg Dollar Index continued its rise on Tuesday. While many developing countries' currencies declined against the dollar, the currency that lost the most was the South Korean won. Turkey's risk premium remained around 290 basis points. In addition, benchmark bond interest is hovering above 15 percent.   The Attention of Domestic Markets at the CBRT Meeting All eyes on the domestic market are turned to the Monetary Policy Board meeting of the Central Bank of the Republic of Turkey, to be held on Thursday, in terms of pricing on how permanent the successful performance of the Turkish Lira against the US dollar will be. Most of the economists participating in the interest survey organized by the Bloomberg HT Research Unit predicted that the CBRT will keep the interest fixed in the February meeting. Five institutions participating in the survey expect a decision of 100 basis points for an interest rate increase. The first monetary policy of Naci Ağbal, who completed his 100th day as the President of the CBRT, was carried out in November 2020. At this meeting, it was decided to increase the interest rate by 4.75 points to 15 percent. In the meeting in December, despite the expectation of a 1.5 point increase, the interest rate was increased by 2 points and reached to 17 percent. At the meeting of Ağbal in January, CBRT decided to keep the interest rate constant and gave the message that the tight stance would continue for a long time.