Dollar Dropped Below 7 Liras for The First Time in 6 Months
With the onset of the new era of the Turkish economy, the Turkish Lira continues to rise in value with the effect of Naci Ağbal's, Governor of the Central Bank of Turkey, monetary policy prioritising price stability.
The downward trend in the US dollar's exchange rate accelerated when some measures taken temporarily by the Banking Regulation and Supervision Agency (BRSA) during the pandemic period were removed in the normalisation process.
The US dollar has decreased in value nearly by 18% since November
The US dollar/TRY, which reached its historical peak with 8.5832 in November of last year, continued its downward trend as a result of the steps taken in the last 6 months and the statements of the economic administration and fell below the level of 7 today. Starting the first trading day of the week with a decline, the US dollar/TRY is now traded at 7.0100 with a 0.4% decrease compared to the previous closing as of 10:00, after declining to its lowest level with 6.9979 since August 5, 2020. The US dollar/TRY has decreased in value nearly by 18% since November.
Within the same minutes, the euro/TRY is sold at 8.5027 with a 0.3% decrease, and GBP/TRY at 9.7290 with a 0.2% decrease. Analysts stated that CBRT's insistence on its tight monetary stance, the steps that have been taken towards achieving price stability, and the economic and legal reform announcements expected from the government increased the interest in assets in the Turkish lira.
Technically, if the US dollar/TRY stays below 7.10, we can see numbers around 6.85, and 7.30 would be a resistance point in possible increases, according to the analysts. They reminded that the US dollar/TRY started its upward trend in August after its horizontal course of 6.70-6.90 in June and July last year, and the depreciation of the Turkish lira continued until November.