The Turkish lira sees continued depreciation against the dollar prices and euro prices, with USD/TRY trading around 34.04 and EUR/TRY at 38.12.
The Turkish lira (TL) continues its downward trend against major currencies, with the USD/TRY exchange rate hovering around 34.04 today. The euro is also trading at ₺38.12 in the interbank market, showing a steady yet concerning depreciation of the lira.
Market Overview
- USD/TRY Performance:
The Turkish lira, which ended last week with a 0.9% loss against the dollar, has extended its decline, with a total depreciation of 2.6% since the beginning of August. - EUR/TRY Update:
The euro’s value against the lira remains strong, with the EUR/TRY pair trading at ₺38.12. This trend reflects ongoing challenges in the Turkish economy, especially as global markets react to various macroeconomic factors.
Economic Coordination Meeting
The Economic Coordination Committee (EKK), chaired by Vice President Cevdet Yılmaz, held a significant meeting today. Discussions focused on the upcoming Medium-Term Program (OVP), set to be announced in the first week of September. This program is expected to outline the government’s key policy goals, which will play a crucial role in addressing economic challenges, including the currency’s performance.
Taxation and Trade Updates
- Top Income Taxpayers:
Turkiye’s top income taxpayers for 2023 have been announced, with Selçuk Bayraktar, Haluk Bayraktar, and Rahmi Koç securing the top three positions, just as they did in 2022. Ziraat Bankası led the rankings in corporate tax payments, reinforcing its significant contribution to the national economy. - Trade Deficit Reduction:
July saw a significant reduction in Turkiye’s trade deficit, which fell by 41.8% to 7.28 billion dollars. This decline was driven by a 13.8% increase in exports and a 7.8% decrease in imports, signaling positive developments in trade balance.
Government Statements
- Minister’s Remarks:
Treasury and Finance Minister Mehmet Şimşek highlighted the progress made in reducing Turkiye’s high current account deficit, a key issue in the country’s macroeconomic stability. He emphasized the government’s commitment to addressing macroeconomic imbalances. - Central Bank Insights:
The Central Bank of the Republic of Turkiye (CBRT) published the minutes from last week’s Monetary Policy Committee (PPK) meeting. The minutes revealed expectations for a slowdown in inflation due to lower food prices in August, but they also noted a potential decline in economic growth during the second quarter.
Inflation and Economic Expectations
According to the latest data from the CBRT:
- Inflation Forecasts:
Public inflation expectations for the next 12 months have risen to 73.1%. However, the real sector’s inflation expectations have decreased by 1.2 percentage points to 53.8%.
These mixed signals reflect the ongoing volatility and uncertainty in Turkiye’s economic landscape, which continues to impact currency markets and investor confidence.
Source: NTV / Prepared by Irem Yildiz