Attention foreign exchange investors! How much is Dollar and Euro? Foreign exchange prices on April 16, 2024 – Last Minute Economy News

A cabinet meeting will be held today under the chairmanship of AKP President Recep Tayyip Erdoğan. The last cabinet meeting was held on March 4.

Yesterday, the Treasury made four borrowings within the scope of the April borrowing program. The Treasury borrowed at a compound interest rate of 49.41 percent with a 1-year bond and 44.55 percent with a 2-year benchmark bond. Yesterday, the Treasury also issued gold bonds and gold-based lease certificates worth 18,520 kg with a two-year maturity to institutional investors.

The Treasury foresees a total domestic borrowing of 169.5 billion TL, 114 billion TL of which is from the market, in response to a domestic debt service of 284.1 billion TL in April.

Today, the Treasury will re-issue four-year maturity TLREF indexed bonds, five-year maturity benchmark and CPI indexed bonds. Additionally, direct sales of two-year lease certificates will take place today. Treasury borrowing will continue with 2 auctions next week.

The increasing TL need of the locals before the Eid holiday and the fact that some of those who switched to foreign currency before the election turned to TL, created a rare downward pressure on the dollar / TL. The increasing yield of TL along with interest rate increases is another factor that reduces the interest in foreign currency.

Treasury and Finance Minister Mehmet Şimşek and CBRT President Fatih Karahan will hold contacts in the USA this week for the World Bank IMF spring meetings. Karahan will speak today at a session on the role of central banks in developing countries.

GEOPOLITICAL CONCERNS AND GLOBAL MARKETS

Iran launched an unmanned aerial vehicle (UAV) and missile attack on Israel on Saturday in retaliation for Israel’s suspected attack on the Iranian consulate in Syria on April 1. Thus, Iran directly attacked Israeli territory for the first time.

While there were concerns about the increasing tension between Iran and Israel, US stock markets fell sharply yesterday as the rise in US Treasury bond yields suppressed risk appetite.

Traders now expect a 45 basis point interest rate cut for this year. At the beginning of the year, a 160 basis point interest rate cut was expected. Markets are pricing that the first interest rate cut will occur in September, not June.

In global markets, the dollar rose to a five-month high against major currencies following the US retail sales data that exceeded expectations, while the yen remained close to its lowest level since 1990, and concerns about intervention in the market grew stronger.

TL LOST VALUE BY 9 PERCENT IN THE FIRST QUARTER

Dollar TL completed the last trading day at 32.3950 before the local elections and followed a fluctuating course around 32 after the elections. The exchange rate started the day around 32.43 this morning. Euro TL is traded in the 34.45 band.

TL lost 3.5 percent of its value against the dollar in March and approximately 9 percent in the first quarter. TL gained 1.4 percent value in the first week of April. Since September 2023, there has been a limited increase in the dollar and TL almost every day, except for rare downward movements.

Despite the recent movement, bankers’ general expectation is that the rise in dollar/TL will gradually continue towards the 40 level at the end of the year.

This means that TL loses nominal value against the dollar. However, the depreciation of TL under inflation also indicates that there will be a real increase in value. CBRT, on the other hand, gives the message that it is satisfied with the real value gain in TL.

CBRT’s surprise interest rate increase and the end of the local elections enabled the Central Bank to turn from a weekly foreign exchange loss of 8.5 billion dollars to a 6.5 billion foreign exchange purchase as of the first week of April. Bankers say preliminary data show that daily foreign exchange accumulation of over $1 billion continued last week.

Traders expressed their opinion that the balance in the foreign exchange market, which has been in favor of TL for years, will change and the positive contribution to the CBRT reserves will continue at least until the end of summer.

CBRT also announced yesterday that it will lose 818.2 billion lira in 2023 due to the high cost of exchange rate protected deposit accounts. The ordinary general assembly meeting for this balance sheet period will be held in Ankara on April 30.