The Turkish Lira touched the support level of 7.30 which was the plan of the central bank. Due to Christmas, the market was inactive and they had a free play on the exchange rate. They also knew that the minister of finance (Albayrak) was going to quit and that the interest rates would be raised. That's why they managed to short usdtry to these levels.
The Turkish citizens will pay the price for it, unfortunately. 130 billion dollars is used to get control over the exchange rate. Due to the reserve of the central bank now (net -50 billion dollars), the rising inflation that is going on in the county, and economic global political problems like the S400 deal which Biden will put heavy embargos on Turkey.
The central bank will now do the reserve policy of what they have done. They will change to dollars and the result will be catastrophic for the Lira. Hyperinflation will come in the country just like Venezuela, 95% of the banks will fall and the interest rates would be around 40-50%. The Turkish Lira could uncontrollable reach 25-30. The people in Turkey have 250 billion dollars in total in their accounts and will not trade in for dollars till the real price manages its place. They know that this is temporary and this was manipulating.
The Turkish citizens will pay the price for it, unfortunately. 130 billion dollars is used to get control over the exchange rate. Due to the reserve of the central bank now (net -50 billion dollars), the rising inflation that is going on in the county, and economic global political problems like the S400 deal which Biden will put heavy embargos on Turkey.
The central bank will now do the reserve policy of what they have done. They will change to dollars and the result will be catastrophic for the Lira. Hyperinflation will come in the country just like Venezuela, 95% of the banks will fall and the interest rates would be around 40-50%. The Turkish Lira could uncontrollable reach 25-30. The people in Turkey have 250 billion dollars in total in their accounts and will not trade in for dollars till the real price manages its place. They know that this is temporary and this was manipulating.