Dollar and Euro are at historical peak! How much are Dollar and Euro worth today? Foreign exchange prices as of February 28, 2024

Vice President Cevdet Yılmaz met with international investors in London and shared Turkey’s 2024 outlook, macro policies and views on the investment climate.

Yılmaz also met with the British Deputy Prime Minister and the President of the European Bank for Reconstruction and Development (EBRD), as well as the Turkish business world.

Minister of Treasury and Finance Mehmet Şimşek and Central Bank (CBRT) Governor Fatih Karahan went to Brazil yesterday to attend the G20 meetings.

HOW MUCH ARE DOLLAR AND EURO?

Dollar/TL broke the all-time record by reaching 31.38 level in Forex markets, continuing its gradual upward trend since September 2023.

According to these data, TL lost 2.7 percent of its value against the dollar in January. The loss of TL against the dollar since the beginning of the year has been 5.3 percent.

Euro/TL broke the record by trading at 34.08.

THE DECLINE IN RESERVES CONTINUES

The downward trend in CBRT reserves that started with the new year continues.

According to bankers’ calculations, net reserves fell by nearly $6 billion last week. Net reserves, which rose to 40.09 billion dollars on December 22, the highest level since January 2020, will have decreased by approximately 17.5 billion dollars in the past two months, when bankers’ calculations are included.

Tomorrow, domestic growth data and personal consumption expenditure data in the USA will come to the fore. Personal consumption expenditures data is being monitored as it will affect the expectations of when the US Federal Reserve (Fed) will start easing monetary policy.

In the Reuters survey, growth of 3.5 percent was expected for the last quarter of last year. In the survey, it is expected that the economy will grow by 4.3 percent in 2023, led by domestic demand, and growth will slow down to 2.9 percent in 2024, with the effect of the transition to strict policies.

Last week, the CBRT stated that the monetary policy stance would be tightened if a significant and permanent deterioration in the inflation outlook is predicted. CBRT also signaled that the policy rate will be kept at the current level for a longer period of time.

In the MPC text, it was pointed out that the “determined stance” in monetary policy will continue to contribute to the “TL real appreciation process”, which is one of the main elements of disinflation.

Stating that the CBRT also gave the message “do not expect an early interest rate cut” with its emphasis on monthly inflation, bankers will monitor the changes in interest rate cut expectations.

LIQUIDITY SURPLUS IS DECREASING

Liquidity surplus in the banking system decreased to approximately 35 billion TL as of yesterday. Last week, liquidity surplus was around 200 billion TL.

Since last year’s general elections, the CBRT has withdrawn over 1 trillion TL of liquidity, primarily through required reserve steps. In its last interest rate decision, the CBRT stated that it would monitor the ongoing effects of the current liquidity steps.

Excess liquidity is closely monitored because it can prevent the full impact of monetary tightening from being reflected in the market.