$USTC

Dollar/TL forecast from Bank of America

Bank of America expects dollar/TL to be at 38 at the end of the year.

Bank of America Securities stated that with the tightening of monetary policy in Turkey, both domestic and foreign investors have become more optimistic, while the real sector has seen a significant slowdown in the economy and banks have seen a return to the dollar.

In the report titled "First quarter pessimism out, summer optimism in", published by BofA economists and strategists, including Zümrüt İmamoğlu, after their visit to Turkey, it is stated that "The private sector is now feeling the slowdown in the economy and is of the opinion that the monetary stance is tight enough." It was said.

BofA stated that positioning in Turkish lira and Turkish lira-denominated bonds is widespread and that crowded positioning in TL and inertia in inflation are seen as the most important sources of concern. "Domestic foreign exchange demand has reversed since the local elections, and in our meetings with banks, they said that they see both individual investors and corporate companies on the sales side," the report said, adding, "If the TL stabilizes, the trend of reversal of dollarization may continue in the summer months. "Given the high inflation level, we expect that there may be some nominal depreciation in TL when capital inflows slow down."

BofA expects Dollar/TL to be at 38 at the end of the year.