Dollar TL rate exceeds 16 again

After a two-week rise in the dollar / TL rate, the decline experienced last night was not permanent, and the exchange rate exceeded the level of 16 this morning reaching 16.08. The Euro / TL level was also seen at 17.25.

The Central Bank (CBRT) was making a veiled intervention by selling foreign currency from its reserves through state-owned banks so that the dollar would not exceed 16 TL. For the first time since December 20, 2021, a level of 16 is seen in the dollar / TL today.

The euro/dollar pair, which has declined to 1.03 levels in recent weeks, also saw a level of 1.0724 today. The euro gained in value against the US dollar.

ECONOMIC POLICIES QUESTIONED IN MARKETS

The sustainability of economic policies, especially the exchange rate, continues to be questioned in the markets. Bankers noted that the decline in the exchange rate, which began at levels close to 16 yesterday and continued to 15.7, was caused by the expectation that a product such as inflation-protected bonds that can provide new foreign currency to the public would be announced at the cabinet meeting, and after this expectation was not realized, the exchange rate again rose yesterday evening.

CONCERN ABOUT RESERVES

Bankers note that reserve losses have accelerated recently in the foreign exchange policy, which they describe as publicly controlled. Analysts point out that there are many developments that force the foreign exchange balance, especially high energy imports, and in this context, the sustainability of exchange rate policy is the main concern in the markets.

The total reserves of the Central Bank (CBRT) fell to less than $ 102 billion as of May 13, and international net reserves fell to $ 11.5 billion. Reserves excluding swaps declined to minus 52 billion dollars in the same period and came close to minus 60 billion dollars once again, which previously brought about major political and economic changes.