Historical Decline in the Grand Bazaar! Dollar Found a Buyer at a Cheaper Price than the Central Bank Rate!

There was a first in the Turkish foreign exchange market after many years. In the Grand Bazaar, the dollar exchange rate started to find buyers at a lower level than the exchange rate determined by the Central Bank (CBRT). This situation is considered as a result of the horizontal exchange rate and the monetary tightening policy implemented by the CBRT.

Foreign Exchange Demand Decreased, Affecting the Exchange Rate:

Citizens’ demand for dollars has decreased due to sudden exchange rate increases in recent months. This situation also affected the dollar exchange rate in the Grand Bazaar. The dollar exchange rate, which was higher than the CBRT’s exchange rate in the past, started to follow a horizontal course in recent weeks and fell below the Central Bank’s exchange rate this week.

Scissor Gaps Are Narrowing:

This normalization in the foreign exchange market creates an expectation that banks will also close their huge spreads. While it is known that the Central Bank gives instructions to banks to prevent foreign exchange demand and wants to increase the spreads, the stability in the exchange rate may lead to this situation changing.

Is the Economy Heading Towards Normalization?:

This development in the exchange rate can be interpreted as the economy moving towards normalization. The horizontal exchange rate and the CBRT’s policy may lead to even greater stability in the foreign exchange market in the coming weeks.

Things to pay attention:

Developments in foreign exchange markets can always be instantaneous and variable. Therefore, it is important for investors to carefully evaluate market conditions and risks before trading.

Past Course of the Dollar Exchange Rate in the Grand Bazaar:

During periods when the dollar exchange rate in the Grand Bazaar was higher than the CBRT’s exchange rate, large spreads occurred in foreign exchange buying and selling transactions. This situation put investors in a difficult situation.

Impact of Latest Developments on Investors:

Stability in the exchange rate and narrowing of spreads can be considered a positive signal for investors. This situation may increase interest in foreign exchange investments.

Note: What is written here is not investment advice.