USD/TRY: Difficult for Turkey to avoid another currency crisis – Societe Generale
|Societe Generale’s strategist Phoenix Kalen predicts deeper losses for the Turkish lira after President Tayyip Erdogan abruptly fired the central bank Governor Naci Agbal on Saturday.
Key quotes
The move by Erdogan leaves the country "beyond the point of no return" and that may lead to a fresh record low in the lira.
"Without much remaining reserves to defend the currency, and considering an expected exodus in foreign and local investor capital, it may be difficult for Turkey to avoid another currency crisis in the coming months."
Forecast USD/TRY at 9.70 in Q2, 9.0 by Q3 and the pair will be at 9.30 in Q4.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.