Goldman Sachs shares its Turkish Lira forecast
Goldman Sachs has released an assessment regarding Turkey. In response to the question, "Will the Turkish Lira depreciate less than expected?", Goldman analysts answered "yes," pointing out that monetary and financial conditions in Turkey have tightened significantly since September.
12punto
Goldman Sachs reported in its statement on the matter that this tightening has led to a moderation in domestic demand and a slowdown in relative price pressures.
Noting that foreign currency inflows have begun to trend upward as real interest rates have returned to positive territory, Goldman Sachs stated, "Considering that the Central Bank of the Republic of Turkey (TCMB) has signaled that it is comfortable with at least some real appreciation of the Turkish Lira, we believe that increasing foreign currency inflows and a narrowing current account deficit will limit the rate of depreciation in the TL in 2024."