Hello Turkish lira traders.
Big News Today
- The Turkish central bank sharply raises interest rates to 24 percent, stating that there was still an upside risk to the inflation outlook from what it called a deterioration in pricing behavior, despite weaker domestic demand conditions. Economists had expected only with 22 percent.
- Leading to that decision, Erdogan today criticized the central bank again for its mismanagement of the crisis, in the end still stating that the central bank is independent. => This is why, even though mainstream media is writing headlines like: 'Central Bank defies Erdogan', it is hard to imagine that the central bank would've done this without 'green light' by Erdogan
- On other news: Erdogan has appointed himself chairman of the country’s sovereign wealth fund with 200 Bn Dollars worth of assets like the Turkish airlines, postal service, and many more. He completely changed its board, naming Finance Minister Berat Albayrak as his deputy, the country’s Official Gazette said on Wednesday.
- Also, in a decision announced earlier on Thursday, he ruled that property sales and rental agreements must be made in lira, putting an end to such deals in foreign currencies like Euro or Dollar.
This leads to much room for an equilibrium between the ranges of 6.8 and 5.68 USD/TRY. Have fun watching! ;)