Devaluation of Turkish lira will continue - FORECAST

Baku. 9 September. REPORT.AZ/ British investment company Ebury Partners predicts that by the end of 2015 the national currency of Turkey will weaken by another 2.3% and its rate against the US dollar to reach 3,10 TRY/USD. According to the results of monitoring conducted by Bloomberg among 39 currency analysts, an investment company Ebury Partners gave the most accurate predictions of the course of the Turkish lira during last year.

Report informs, trend towards a weakening of Turkish lira will continue over the next year.The decision to hold new elections because of the impossibility of forming a government after the last parliamentary elections in Turkey, the terrorist attacks in the east of the country, which led to casualties, the economic situation in China, expectations of US rate hike by year-end, continuing the process of withdrawal of investments from financial markets of developing countries such as Turkey (emergency markets) since the beginning of the year led to a sharp weakening of the Turkish lira.

So, if at the beginning of the year the rate was 2,33 TRY / USD, now it exceeded the level of 3 USD. As a result, the national currency suffered a 30% devaluation this year.

Experts of Report predict that the ruling party is unlikely to win at scheduled elections in Turkey this November.

This month US interest rates expected to increase by the Federal Reserve (Fed), which will lead to further strengthening of the dollar in world currency markets.These two factors can contribute to the appreciation of the dollar to a mark of 3,20-3,30 TRY/USD.