Turkish Lira Holds Its Value

The Turkish Lira holds its value. Recently, the TL has been keeping its strength against the US dollar stable.

The rally that started in the Turkish Lira last week proves that it maintains its value even if it slowed down at times. The USD/TL exchange rate, which has been in a downward trend for the last 3 days, tested the lowest level seen since August. The 10-year bond interest was traded at 12.95 percent with an increase of 2 basis points, while the 2-year bond interest fell 3 basis points to 14.74 percent. In the program of Naci Ağbal, the President of the Central Bank of the Republic of Turkey (CBRT), who has recently accelerated his communication efforts especially on price stability, TÜSİAD and MÜSİAD will be visited today. CBRT Chairman Naci Ağbal used the following statements in an interview with Reuters recently: "Increasing our reserves under favorable conditions continues to be a priority. As stated in the text of the Monetary and Exchange Rate Policy for 2021, it will be aimed to strengthen foreign exchange reserves in terms of the effectiveness of monetary policy and financial stability in 2021 and the tools for this will be used transparently, within a certain plan, and in appropriate conditions. In 2021, foreign currency rediscount loan returns will continue to contribute to foreign exchange reserves. This year, we anticipate that the reserve-enhancing effect of rediscount loan returns will amount to $21 billion. In addition, in periods when the foreign exchange supply in the market rises steadily and steadily compared to the foreign exchange demand, our Bank will be able to hold foreign exchange buying auctions with transparent methods, provided that they comply with the floating exchange rate regime, within a plan whose rules have been announced beforehand. " On the other hand, CBRT closely monitors the relations between the USA and Turkey in the markets. US State Department Spokesperson Ned Price stated that the US stance on the S-400 missile defense systems that Turkey bought from Russia is the same, and they repeated the call to Turkey not to preserve these systems. Price informed that the foreign ministers of the USA and Turkey will meet in the coming days.