‘Fair Value’ of Turkish Lira Announced

The International Finance Institute (IFF) made a remarkable statement about Turkey. Institute officials say that the “fair value” of the dollar/TL parity is is 16.5 expressed. This value was announced as 9.5 in May 2021. Well what does it mean? Dollar/TL parity fair value What means?

As Webtekno, we share with you the forecasts of financial giants from time to time. However, the data announced by IFF is a not guess. Even though it may seem that, ‘fair value’ is actually a country’s ‘fair value’ by looking at official figures. to close the current account deficit. It expresses what the dollar equivalent of that country’s currency should be.

Why did the dollar/TL fair value suddenly increase from 9.5 to 16.5?

Explanations on increasing the fair value of USD/TL parity to 16.5, IIF Chief Economist Robin Brooks It was done by. Robin Brooks referred to the rising current account deficit. Expressing that the credit expansion in Turkey is high, Brooks said that commodity prices are also high. increase is in trend told.

IFF had announced the fair value of the dollar/TL as 5.5 years ago in its calculations. This value is first in accounts made in 2020. 6.30 after 7.50, increased to 9.50 in 2021. The continuation of the depreciation of the Turkish lira and the rise in the current account deficit, IFF officials higher fair values ​​can lead to calculation…