❕ Caucasus conflict has provided a fresh fuel for USDTRY rally. Is Turkey on the brink of the currency crisis?
The Turkish lira has been under pressure for a long while. Monetary expansion aimed at restoring growth has backfired and capital outflows led to depleted official reserves. Fearing the worst, the central bank raised rates by 2 percentage points last week but it only paused lira decline.
Caucasus conflict between Azerbaijan and Armenia is the new cause of concern as it may drag Turkey into another unwanted conflict. Geopolitical tensions make for the latest cause of USDTRY surge. The pair is up over 2% just this week and trades at the highest level ever.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
