Some experts expect US Dollar to become 4 Turkish Liras by end first quarter 2018
Some financial experts making predictions for Turkey and the emerging markets have shared their views about finance markets for the current year. They stated that they expected US Dollar to become 4 Turkish Liras by first quarter of the current year and 4.15 Turkish Liras by the end of 2018.
To provide more detail they said “The environment for emerging market assets is still positive and the Fed has a cycle of interest rate increases. Other Central Banks are shifting to the tight monetary policy, which will make the situation more challenging for emerging markets. However the environment for emerging market assets is still generally positive and positive gains are expected in market assets that are growing with growth momentum and declining external vulnerabilities.”
According to same experts the Turkish Lira is expected to be one of the best performing currencies of the year. They said “TL will maintain its resistance due to carry trade and external power. We expect a US$ TL rate of 4 by the end of the quarter and 4.15 at the end of the year”
As for expectations from Central Bank regarding interest rates experts emphasize that the inflation is high and comment that interest rate hikes are more likely than discounts, looking at the current deterioration.
Considering that the monetary tightening policies may be practiced by FED and the European Central Bank, the pressure of interest rate increase is likely to grow while Turkey is in need of hot money financing.
