Turkey Seen Letting Lira Slide at Mid-20% Annual Rate as External Balance Takes Priority
Updated
Updated · Bloomberg · Jul 20
Turkey Seen Letting Lira Slide at Mid-20% Annual Rate as External Balance Takes Priority
1 articles · Updated · Bloomberg · Jul 20
Summary
Goldman Sachs expects Turkey to tolerate a faster lira depreciation, with the currency weakening against the dollar at an annualized pace in the mid-20% range.
That shift would favor external-balance stabilization over disinflation, even if it slows the pace of price easing, economists Clemens Grafe and Basak Edizgil wrote in a Monday report.
The call signals a policy trade-off: a weaker lira could help relieve external pressures, but it would make Turkey's inflation fight harder to complete.