Turkish Lira Tumbles Amid Election and Earthquake Woes

Service for copy trading. Our Algo automatically opens and closes trades.

The L2T Algo provides highly profitable signals with minimal risk.

24/7 cryptocurrency trading. While you sleep, we trade.

10 minute setup with substantial advantages. The manual is provided with the purchase.

79% Success rate. Our outcomes will excite you.

Up to 70 trades per month. There are more than 5 pairs available.

Monthly subscriptions begin at £58.

L2T Algo

TELEGRAM

RESULTS

The Turkish lira just can’t seem to catch a break! The currency hit yet another record low against the dollar, trading at 18.9620 on Thursday. The recent massive earthquakes and the upcoming presidential and parliamentary elections scheduled for May 14 are weighing heavily on investors’ minds.

With the election fast approaching, Turkey must choose whether to stick to President Tayyip Erdogan’s unorthodox policies or revert to the old orthodox ways promised by the opposition. The result will have a significant impact on the country’s economic future.

Meanwhile, the Treasury announced it has borrowed $2.25 billion in a Eurobond issue maturing in 2029, bringing the total amount borrowed from international markets to $5 billion this year. That’s a lot of cash, but with the yield to investors at 9.50%, down from 9.75% in January, it’s hardly a bargain.

But wait, there’s more! More than a third of the amount issued was sold to investors in the United Kingdom, and over 20% went to investors in the United States. Turkey is attracting investors from around the globe!

Despite the authorities’ best efforts to keep the lira stable, the recent earthquakes have sent the currency tumbling. Authorities have dipped into reserves, which has been a regular feature of the government’s economic policy in recent years, and have taken steps to cool demand for forex by widening the spread in forex and gold trades.

Conclusion: Is There Hope for Lira?

The bottom line is that the lira has lost around 30% of its value against the dollar in 2022 and a whopping 44% the year before. Turkey’s economic woes are not over yet, but with its strategic location and attractive tourist destinations, there’s still hope that the lira will bounce back.