The Turkish Lira has been losing value steadily against the dollar since September.
Dollar/TL, which was 26.71 lira on September 1, reached 28.93 lira, showing increases of a few cents every day in the last two and a half months.
While it is known that the Central Bank plays the role of the main buyer and seller in the foreign exchange market, this steady depreciation in the dollar / TL exchange rate began to attract attention.
Kerim Karakaya from Bloomberg drew attention to the gradual decline in the Turkish Lira in his article titled ‘TL attracts foreigners again’.
A 0.1 PERCENT DAILY VALUE LOSS IS EXPERIENCED
It was stated that the Dollar/TL exchange rate has depreciated by approximately 0.1 percent per day on average for the last 3 months, and the depreciation in TL remained below inflation.
Karakaya stated that foreign investors may see this situation as an opportunity for carry trade and said, “The unnatural stability of the depreciation in TL attracts the attention of investors who want to borrow from places where interest rates are low and invest money in places where returns are higher (carry trade).”
SECOND IN THE WORLD
It was reminded that TL, which lost 35 percent of its value against the dollar this year, is the currency that lost the most value in the world after the Argentine peso.
While it was stated that Turkey was at the top of the world inflation league, it was suggested that the situation for TL might change.
The news also noted that the dollar/TL exchange rate volatility fell below 10 percent this month, falling to the lowest level of the year.