Hard Selling in USDT/TRY Parity on Binance! Are Interest Rates Priced?

There are only 3 days left until the critical interest rate decision for Turkey, which has been struggling with high exchange rates and high inflation for a while.

per economy Mehmet SimsekWith the arrival of the , expectations about the transition to orthodox policies have increased and eyes have been raised. of the CBT It was turned into an interest rate decision to be announced on June 22.

President Erdoğan’s statement, “We have accepted the steps Mehmet Şimşek will take” recently, also strengthened the expectations that the fight against inflation will be targeted by raising interest rates again.

While the eyes were turned to the CBRT’s interest rate decision on June 22, there was a sharp movement in the USDT/TRY parity, which is traded on crypto currency exchanges.

Traded at 23.5 TL on Binance USDT It soon hit 22.2 hard and then rose again to 23.37. While the reason for this 5% pullback is unknown, it is considered that a large investor may have exited the dollar before the interest rate decision, but the price recovered quickly due to the still high buying pressure.

We see that there is a general expectation that the interest rates in the market will be increased to 20% and above in a single meeting.

Finally, Bank of America stated that it is expected that the CBRT will increase the interest rates to 25%, but that it is necessary to be ready for different scenarios. The following statements were included in the report published yesterday:

“Two paths are possible for the CBRT. The first way is to raise interest rates and slowly remove regulations and controls. In this scenario, it is possible to set the interest rate at 25 percent or lower and to signal more interest rates. The other scenario is to start by raising interest rates to restrictive levels without easing current financial conditions. This scenario will allow for a faster correction in the economy and strengthen credibility and predictability. In our opinion, the odds are more in favor of a gradual correction rather than a quick fix. The corridor can also be used to tighten additionally without increasing interest rates.”