10:58 – Dollar exceeded 34 TL! The exchange rate saw 34,002 TL. The weekly increase in Dollar/TL exceeded 1 percent.
The dollar exchange rate started the last critical day of the week at 33.96 TL. The euro started at 37.85 TL.
The Turkish Lira lost 14 percent of its value against the dollar in 2024. The Central Bank also drew attention to the increasing demand for foreign exchange for the last 1.5 months with a blog post. The Central Bank of the Republic of Turkey stated in the post it published yesterday that foreign exchange deposit demands were mostly due to current surplus and exits from the KKM. The analysis said, “One of the reasons behind the increase in FX deposits may be the current surplus in the summer months. In the summer months when the economy has a current surplus, companies can increase their foreign exchange deposit accounts seasonally. Another important factor driving the increase in FX deposit accounts is the exit process from the KKM, which continues to accelerate with the policy steps taken.”
Foreign exchange deposit figures, which were $162.9 billion in the week of July 5, increased to $169 billion in the week of August 16. Thus, there has been an increase of $7 billion in foreign exchange deposit accounts since July 5.
While foreign exchange deposits of individual accounts increased by $1 billion 182.40 million compared to the previous week and amounted to $103 billion 976.70 million, foreign exchange deposits of companies decreased by $101.0 million and fell to $65 billion 33.20 million.
It is not only the Central Bank that draws attention to the demand for foreign exchange! US investment bank Goldman Sachs reported that the interest rate reduction cycle may be delayed as the trend towards the dollar gains momentum.
While foreign exchange deposits continue to increase, the dissolution in KKM accounts continues. In the week ending August 16, accounts decreased by 55.2 billion TL. Thus, KKM accounts decreased to 49.7 billion dollars.
Today, markets are expecting dovish statements from Fed Chairman Jerome Powell. Fed Chairman Powell is expected to point to a September interest rate cut in his speech at the Jackson Hole meeting.
