New peak in Dollar and Euro! How much are Dollar and Euro worth today? Foreign exchange prices as of February 27, 2024

Vice President Cevdet Yılmaz will meet with the Turkish business world and investors today during his visit to England.

Yılmaz, who will meet with British Deputy Prime Minister Oliver Dowden and EBRD President Renaud Basso, will address investors at the London Stock Exchange.

Minister of Treasury and Finance Mehmet Şimşek and Central Bank (CBRT) Governor Fatih Karahan are going to Brazil today to attend the G20 Finance Ministers and Central Bank Governors Meeting.

RESERVES ARE IN DECLINE

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 dropped to a historical low of -5.7 billion dollars as a result of the negative real interest rates and foreign exchange sales implemented by the Central Bank before the elections at the end of May.

There was a significant recovery in foreign exchange reserves in the second half of last year.

This recovery reversed its direction starting from the last week of December. 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.

While the CBRT kept the policy rate constant at 45 percent last week, dollar/TL experienced one of the rare but non-permanent declines due to the perceived pro-tightening statements. After the MPC, the exchange rate returned to its gradual rise.

HOW MUCH ARE DOLLAR AND EURO?

Dollar/TL started the day at its new historical peak at 31.32, 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 5.16 percent.

Euro/TL broke the all-time record by reaching 34.02 in Forex markets.

GROWTH FORECASTS FOR THE LAST QUARTER

On the domestic data agenda this week, the GDP data to be announced on Thursday and the personal consumption expenditures to be announced on the same day in the USA stand out.

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.

The liquidity surplus in the banking system was approximately 81 billion TL as of yesterday. CBRT has withdrawn more than 1 trillion TL of liquidity since last year’s general elections.

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