The Turkish lira remained extremely volatile, rising today after four consecutive sessions of losses.
The lira gained on the news that Turkish policy makers lowered tax on lira deposits and raised them on deposits in foreign currencies. TEB Investment/BNP Paris strategist Isik Okte told Reuters:
It appears to be a step taken to make lira deposit usage more attractive and to make a move from forex to lira deposits ‘profitable’. More actions will be taken by the authorities to reduce short-term USDTRY (dollar/lira) volatilities.
The Turkish central bank was taking actions to address the recent slump of the currency, though refrained from raising interest rates again following the June rate hike.
USD/TRY fell from 6.6491 to 6.5700 as of 11:14 GMT today, rising as high as 6.7839 and falling as low as 6.3853. EUR/TRY edged down from 7.7736 to 7.6613.
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