“The rise in the exchange rate will reveal structural vulnerabilities in the Turkish economy”

Deutsche Bank stated that they expect the Turkish lira to lose value unless there is any change in monetary policy, and that the rise in the exchange rate may reveal structural vulnerabilities in the Turkish economy.

The bank also emphasized that it was difficult to predict what the next step of the Central Bank of the Republic of Turkey (CBRT) would be, and this largely depended on the performance of Turkish assets in the next few days. The bank also noted that markets, including their own, expected an increase in dollarization.