Central Bank Keeps Interest Rates Steady as Dollar and Euro Slide Against Turkish Lira
As of July 23, 2024, the dollar exchange rate has experienced a notable decline following the Central Bank’s decision to maintain the policy interest rate at 50%, in line with market expectations. In the interbank market, the USD/TRY rate has dropped by 0.24% to 32.83, while the EUR/TRY rate has fallen by 0.61% to 35.66.
The Central Bank of Turkiye (TCMB) has also introduced new measures to manage excess liquidity in the market, announcing the initiation of swap auctions for the sale of Turkish lira against gold and foreign exchange.
At the latest meeting of the Economic Coordination Board, chaired by Vice President Yilmaz, it was emphasized that the actions outlined in the Medium-Term Program (OVP) are being implemented with determination. The increasing interest in the Turkish lira is seen as a factor strengthening financial stability.
The consumer confidence index has decreased by 3.1% in July, dropping to 75.9, marking the lowest level of the year. İş Bankası General Manager Hakan Aran commented on the economic cooling, noting that citizens are beginning to tighten their belts, and suggesting that economic relief may not be seen until 2027.
Meanwhile, domestic tourism expenditures reached ₺45.3 billion in the first quarter, with 8.26 million residents traveling primarily for family visits.
On the global front, markets are closely watching the withdrawal of President Joe Biden from the presidential race and the earnings reports from major companies like Tesla and Alphabet, which are expected after the New York stock exchange closes.
Source: NTV / Prepared by Irem Yildiz