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Turkish Lira close to a record low

Miguel A. Rodriguez
Miguel A. Rodriguez
26 April 2021
After the 15% slump recorded in March, the Turkish Lira lost 3.5% in the past couple of days

On early trading today, USD/TRY was close to a new record low after US president Joe Biden officially recognized the 1915 massacre of Armenian in the Ottoman Empire as a genocide. Turkey, a NATO ally, criticized the White House's decision, stating that it undermined trust and friendship. Ibrahim Kalin, President Tayyip Erdogan's spokesman and adviser, told Reuters that Washington should act responsibly since there is in no one best interest to "artificially undermine ongoing relationships for narrow political agendas." "Everything that we conduct with the United States will be under the spell of this very unfortunate statement," he added.

Moreover, the new central bank chief Sahap Kavcioglu appointed a month ago, announced that he would keep the monetary policy tight, as any rate hike could send a wrong message. Analysts believe that the bank would begin cutting rates around mid-year. Some predict that Kavcioglu could revert to a cost policy of selling foreign currency reserves to support the Lira.

The currency, which is among the worst performers in emerging markets this year, traded at 8.425.


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.