USD/TRY seen at 20 in 12M horizon with risks clearly tilted to the upside – Danske Bank

USD/TRY is set to move higher. Economists at Danske Bank 20.00 in a year. 

‘Perfect storm’ looming for Turkey and lira

“The rising stagflation fears combined with tightening financial conditions, negative terms of trade shock, and no signs of a turnaround in domestic economic policies indicate further weakness for the lira.”

“We see USD/TRY at 20 in 12M.”

“Risks are tilted towards even further TRY weakness as the intervention policies, which have supported the currency over the past months, begin to lose steam.”