When we take a look at what happened since the beginning of the week, we can see that exchange rates are back on the track again, which means that neither CBRT’s manoeuvre nor statements from Ankara seem likely to stop USD/TRY from hitting record highs again.

First of all, I must say the fact that CBRT’s statement for banks, “Do not bring me dollars. You can keep it all. But you better hand over the liras to me” only answered the purpose of triggering a predictable movement. CBRT was merely making efforts to “delay the unavoidable” for a very long time. The result of the attempts for preventing USD/TRY from touching the levels of 2.00 and 3.00 respectively is quite obvious I think.  Therefore, we better get ready to go through the same things again when the duo hits the ‘already tested’ 4.00 level again.