Today’s Dollar and Euro Exchange Rates: What You Need to Know
The limited movements in the foreign exchange market continue today, with the dollar and euro showing moderate stability. As of the morning of September 27, 2024, the USD/TRY started the day at 34.15, while the EUR/TRY exchange rate stood at 38.18.
These rates reflect ongoing economic activities and regulatory updates that are shaping Turkiye’s financial landscape. The Central Bank of the Republic of Turkiye (CBRT) and the Banking Regulation and Supervision Agency (BDDK) have both introduced crucial decisions related to loans and credit card policies that are being closely monitored by market players.
Key Developments in the Turkish Economy
1. Credit Card Restructuring and Loan Updates
- The CBRT recently published a decision in the Official Gazette, updating the maximum contractual interest rates for credit card transactions based on the amount owed.
- Additionally, the BDDK has introduced new measures, allowing credit card debt and overdue personal loans to be restructured with a repayment period of up to 60 months.
- Minimum Payment Changes:
- For credit card debts under ₺50,000, the minimum payment rate is set at 20% of the total debt.
- For amounts over ₺50,000, the minimum payment increases to 40%.
These decisions are aimed at easing financial pressures on households and improving consumer spending flexibility.
2. Foreign Trade Performance
- Exports: Turkiye’s exports in August 2024 rose by 2.3% compared to the same month last year, reaching $22.048 billion.
- Imports: Imports, on the other hand, decreased by 10.7%, settling at $27.040 billion, contributing to a narrowing trade deficit.
- Trade Deficit: The overall trade deficit fell by 42.7%, amounting to $4.992 billion.
This boost in export figures signals a positive trend in Turkiye’s economic outlook, with the potential to support the Turkish lira in the near future.
3. Economic Confidence Index Rises
In September, Turkiye’s economic confidence index climbed by 2% month-on-month, reaching a level of 95. This marks a steady recovery, reflecting the improved sentiment among businesses and consumers.
Overnight Interest Rates and Liquidity Insights
Despite recent CBRT liquidity measures, the overnight interest rate dropped to 47.15% yesterday, hovering near the lower bound of the interest rate corridor. Analysts point out that although the official policy rate stands at 50%, the fact that overnight rates remain below this level suggests that the full impact of tight monetary policy has yet to reach the broader market.
Why Are Overnight Interest Rates Falling?
- Excess Liquidity: The CBRT’s accumulation of nearly $95 billion in reserves has resulted in an excess of Turkish lira liquidity, keeping overnight interest rates lower.
- Implications: While this surplus liquidity might ease some pressures on the financial system, experts caution that it could limit the full impact of tighter monetary policies on the economy.
What’s Next for the Turkish Lira?
As Turkiye’s foreign exchange reserves continue to build and trade figures improve, the outlook for the lira remains cautiously optimistic. The combination of supportive regulatory measures and solid export performance may contribute to a more stable exchange rate in the coming months, though challenges in global markets could still exert downward pressure on the currency.
Summary of Today’s Financial Highlights:
- Dollar/TL started the day at 34.15, Euro/TL at 38.18.
- CBRT and BDDK have implemented new policies on credit cards and loans.
- Turkiye’s exports grew 2.3% in August, while imports fell 10.7%, reducing the trade deficit.
- The economic confidence index rose by 2% in September, reaching 95.
- Overnight interest rates fell to 47.15%, reflecting an ongoing surplus of Turkish lira liquidity.
Keep following the latest updates as Turkiye navigates these evolving economic conditions, which are bound to impact both businesses and consumers.
Source: NTV