Turkish Lira Is On A Positive Course

The Turkish Lira is determined on a positive course. While the US dollar is moving horizontally in global markets, the TL maintains its value today.

The Turkish Lira, which gained value after the CBRT's messages that the tight stance will be applied for a long time, continues its valuable stance on the first trading day of the week. The USD/TL exchange rate saw below 7.04, the lowest level since August 2020. In an interview with Reuters, CBRT President Naci Ağbal pointed out that it seems unlikely that they will be on the agenda for a long time. Ağbal said, “We are far from our medium-term inflation target of 5 percent. The estimates we have presented in the January Inflation Report show that we can achieve this target in 2023. Therefore, the tight and prudent monetary policy stance should be resolutely maintained for a long time until 2023, when the 5 percent target is expected to be achieved.”   The Decline in Risk Premium Supported the Positive Atmosphere The falling risk premium also supported the positive atmosphere in Turkish assets. The risk premium, which fell behind 300 for the first time during the coronavirus epidemic process, dropped to 286 base points on the first trading day of the new week. The benchmark bond interest was traded at 14.77 percent.