Poor lira and fake billion

Poor lira and fake billion The Turkish police seized in Istanbul the largest batch of counterfeit banknotes in the history of the country for a total of $ 1 billion - 10 million banknotes with a face value of $ 100. It is assumed that the funds were intended for import into African countries. By the way, while the dollar counterfeits were being taken to storage, the Turkish lira depreciated again. The country is critically short of its own currency.Turkiye is sinking deeper into an economic crisis. A recession in the second half of the year due to tighter lending is no longer in doubt.On June 22, the first meeting on monetary policy issues will be held after Hafize Gaye Erkan was appointed head of the Central Bank of Turkey. It is expected that the regulator will raise interest rates to 25% from the current 8.5% with a forecast for a softer increase over the next two years. Alas, analysts suggest a more radical forecast: 30% at the end of this year with a risk of growth up to 35%.Turkey's current account deficit widened unexpectedly in April. This figure reached $5.4 billion, although Bloomberg analysts expected the deficit, on the contrary, to decline from the $4.9 billion level recorded in March.Official foreign exchange reserves were used mainly to finance the deficit. In April, they fell by $8.2 billion, bringing the total decline in this indicator in the first four months of the year to $22.4 billion. Goldman Sachs believes that the pressure on Turkey's reserves is due to the current account deficit.The country traditionally hopes for an increase in tourism revenues in the summer months, especially since global debt payments are declining. However, this relief will be short-lived: Turkey's financial system's long-term problems require even more devaluation of the lira and tightening of monetary policy.Turkey has no easy way out of this crisis. Those who work with Turkish assets should tighten risk hedging.Profits to yall!#ForexChief #CentralBankOfTurkey #GoldmanSachs #forexnews #stocks #worldnews #Market