American experts threatened “the re-elected Turkish president with staggering inflation.” As reported by the Turkish media, analysts of the American investment bank Morgan Stanley predicted a drop in the value of the lira by 29% to 28 lira per dollar by the end of the year.
We remind you that at the moment, the actual rate of the Turkish lira is about $1 = 20 TRY. As Morgan Stanley said, “If re-elected President Recep Tayyip Erdogan continues his policy of low-interest rates, the Turkish lira could face the risk of losing 29% of its value.”
As a result, the dollar/Turkish lira ratio could rise to 26 faster than expected, and if there is no change in policy, it could reach 28 lira to the dollar by the end of the year.
As the American analysts add, “Turkey’s high external financing needs and current macro risks will increase the sensitivity to global shocks and the availability of foreign currency inflows.”
They also note that investors will closely monitor Turkey’s post-election economic policies and whether Erdogan will return to orthodox economic policies.