Today’s Exchange Rates: How Much is the Dollar Worth? (June 4, 2024)

The exchange rates for the dollar and euro against the Turkish Lira (TL) remain of keen interest to investors. The forex market has shown a stable trend through June, with the Dollar/TL trading around ₺32.21 and the Euro/TL at ₺35.14.

Today’s financial agenda includes a presentation by Central Bank of Turkiye (TCMB) Governor Fatih Karahan to the Parliamentary Planning and Budget Commission, Treasury auctions, and a cabinet meeting. Additionally, the TCMB’s monthly price developments report and the May real effective exchange rate data will be closely monitored.

In a notable development, the Central Bank’s net reserves, excluding swaps, turned positive on May 31, reaching $1.5 billion. This marks the first time in over four years that the net reserves have been in positive territory.

Treasury and Finance Minister Mehmet Şimşek highlighted this improvement in an interview with NTV, stating, “There is an unprecedented inflow of resources.” Şimşek emphasized that negative reserves are no longer a concern.

Foreign investors have significantly increased their bond purchases, totaling $7.1 billion over the past five weeks. Şimşek noted that the foreign share in the government debt securities (DİBS) market has risen from 0.5% to 10%.

Addressing criticisms of carry trade, Şimşek remarked, “We have no explicit or implicit exchange rate commitment. Carry trade is part of the market; as our program yields results, we expect the maturities to lengthen.”

Source: NTV / Prepared by Irem Yildiz

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