Economy in Turkey:  Historical high for USD/TRY

Breaking news… The USD/TRY exchange rate started the week at levels close to 27.5, gradually continuing its historic rise. It reached a peak of 27.72 during the day. The upward momentum in the USD/TRY exchange rate that has been observed for a while continued on the first trading day of the new week.

In the morning hours, the exchange rate was trading at around 27.5. On September 27th, it reached a peak of 27.64, and during the day, it hit a new peak of 27.72. In the past month, the exchange rate has risen by nearly 3%.

INFLATION EXPECTED TO RISE

This week, preliminary foreign trade data for September will be closely monitored, but the standout data will be the September Consumer Price Index (CPI) to be announced tomorrow.

Due to the cumulative effect of the depreciation of the Turkish Lira (TL) after the elections and tax increases, it is expected that the CPI will rise by 4.9% on a monthly basis in September and continue to rise on an annual basis, reaching 61.7%.

According to a Reuters survey, the median year-end inflation forecast is at 68.5%, with estimates ranging from 66.45% to 72%. In the survey conducted in August, the median year-end forecast was 55.7%. Economists expect inflation to peak at around 75% in May 2024.