The Turkish lira is expected to perform well soon
Analysts at the Amirican Goldman Sachs investment bank, one of the largest investment banks in the world- based in New York,stated that the real value of the Turkish lira against the US dollar is 2.5 lira, not at the current price of 3.5 lira, which means that the fair value of the Turkish lira is 30% higher.
Analysts also pointed out that the reluctance of the Turkish central bank to raise interest rates has reduced the appreciation of the lira against the US dollar, while the Turkish lira is the most prominent emerging market currency for good performance in the foreseeable future.
Turkey’s economy grew 5% in the first quarter of this year, as the Turkish government regained control quickly after the failed coup attempt in mid-July.
The Turkish economy has seen a qualitative leap forward following the decision of the Turkish Central Bank to raise liquidity to 12.25% in its April 2017 meeting. Analysts at Goldman Sachs Bank are expecting further progress if the CBK maintains its current policy.