Categories: Economy

TL outperforms ruble and peso in depreciation

TL outperforms ruble and peso in depreciation

Each segment, domestic or foreign, is questioning where the LT can be balanced, what economists and financial experts describe as a “deliberate devaluation”. While the dollar was close to its all-time high of 26.12 yesterday, the TL has lost 20 percent in value in the past month against the greenback.

THERE ARE TWO OBJECTIVES

Across 23-country emerging markets, TL has clearly outperformed other currencies with its one-month loss against the dollar. On the list, where TL ranked first with a 20 percent loss against the dollar, the Russian ruble ranked second with a 9 percent loss. The monthly depreciation of the Argentine peso reached 7 percent. The monthly loss of the Chinese yuan, the Malaysian ringgit and the Taiwan dollar, which came after these three countries, did not reach 2 percent. With the new economic management headed by Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, he is expected to move away from the low-interest policy for at least a while.

According to economists, the new economic management has two objectives. The first is to bring in speculative capital from the West through interest rate hikes. The second is to attract direct investment from capital from the East by keeping interest rates low and below inflation, thus depreciating the TL. The economist Güldem Atabay, who stated that the greatest support for the management of the new economy, which started the hunt for direct investment from the Gulf, came from the LT, which caused the depreciation, said: “The way to attract direct investment from the United Arab Emirates, Qatar, Saudi Arabia to Turkey, which will come to the country in the next period, is from the cheaper TL pass”, he commented.

South African rand in first place

According to data from the US news agency Bloomberg, 12 of the 23 emerging market currencies gained monthly against the dollar. The currency with the best monthly performance against the dollar was the South African rand, gaining 4.8 percent. The Colombian peso ranked second among the best with a gain of 4.2 percent. The Polish Ziloti, on the other hand, stood out with a monthly value gain of 3.3 percent. The Brazilian real and the Mexican peso have gained 3.1 percent in the past month against the dollar.

Source: Sozcu

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