Goldman Sachs’ Turkish Lira forecast

Goldman Sachs, in its assessment of the Turkish economy, stated, “We think that increasing foreign exchange inflows and narrowing current account deficit will push the rate of depreciation in the TL into the limits in 2024.”

Goldman Sachs answered “yes” to the question “Will the Turkish Lira depreciate less than expected?”.

Pointing out that monetary and financial conditions in Turkey have tightened significantly since September, Goldman Sachs said, “This has led to moderate domestic demand and relatively slower price pressures.”

“Given that the Central Bank of the Republic of Turkey (CBRT) has signaled that it is comfortable with at least some real appreciation of the Turkish Lira, we believe that increased FX inflows and a narrowing current account deficit will keep the rate of depreciation of the TL within limits in 2024,” Goldman Sachs said, noting that foreign currency inflows have started to increase as real interest rates have returned to positive territory.

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