USD/TRY to continue to rise orderly toward 20 by year-end – Credit Suisse

Economists at Credit Suisse still think the central bank will sell from its reserves in order to prevent excess lira weakness. They stick to an end-year target of 20.00 for USD/TRY.

Another rate cut is expected

“The Turkish central bank is widely expected to deliver a third consecutive policy rate cut tomorrow (20 October). We do not expect a lasting impact on the lira from tomorrow’s meeting.”

“Our core view remains that the central bank will sell from its reserves in order to prevent excess lira weakness amid rising funding pressures from the balance of payments in coming months.”

“We stick to an end-year target of 20.00 for USD/TRY.”