Dollar/TL reached 16′ TL after 10 days of increase. The intraday high was 16.0477. Euro, on the other hand, saw the process at 17,2182 TL and reached the highest level of 17,2220 during the day.
CENTRAL BANK’S RESERVES ARE DELETING
The main reason for questioning the sustainability of the exchange rate policy, which the market defines as publicly controlled, is the fact that the CBRT’s reserves continue to erode despite the need for more and more foreign currency to maintain its current foreign exchange policy. The CBRT’s reserves excluding swaps have also decreased to minus 52 billion dollars.
TL LOSE 8 PERCENT THIS MONTH
The Turkish lira has lost approximately 8 percent of its value against the dollar since the beginning of the month. Whether the public will allow the continuation of the loss in TL is the main agenda item in the markets.
Dollar/TL followed a horizontal course for two months in the middle of 14.5-15 until the first days of this month. Then, with a continuous rise, the exchange rate approached 16, but now it did not test above this level.
Even though the CBRT adds 40 percent of the exporter’s foreign exchange revenues and the foreign currency part of the KKM application to its reserves, the bank’s reserves do not increase at the same rate. The difference in the middle is the currency used for “stability” as defined by the government. While the CBRT does not officially accept its interventions in the exchange rate, it describes the movements as a floating exchange rate regime.
IT STARTED UNDER 16 QUICKLY
Dollar/TL started the first trading day of the week quickly under 16. The exchange rate started at 08:55 this morning at the level of 15.97/15.98.