Exchange rates in Turkey continue to be an important variable influenced by market movements. The rapid rise of the US dollar against the Turkish lira in recent times has become a focal point of interest in the markets. However, it has been observed that exchange rates have been relatively stable in recent days, raising questions about whether the Central Bank has intervened in the foreign exchange markets. #CBRT #TCMB #USDC #DOLLAR #turkey

Movement of the US Dollar Exchange Rate:

Yesterday, the US dollar closed at a level of 26.15 Turkish liras. Today, the dollar exchange rate is showing a moderate positive trend. Reaching its highest value of 26.1940 Turkish liras during the day, the exchange rate currently stands at 26.14 Turkish liras with a 0.19% increase as of 4:00 PM.

The Situation of the Euro:

The euro is also exhibiting movements similar to the dollar. Reaching its highest level of 28.89 Turkish liras during the day, the euro is currently at 28.94 Turkish liras with a 0.30% increase at the same time. The euro occasionally exhibiting more aggressive movements against the dollar gives the impression that interventions have been made in the USD/TRY parity.

Role of the Central Bank:

However, there is no definitive evidence that the Central Bank has directly intervened in the market. According to the CBRT Analytical Balance Sheet data, the Central Bank is generally in a buyer position in the foreign exchange market. This situation has also been emphasized by the Minister of Treasury and Finance, Mehmet Şimşek, to support the improvement in reserves. Şimşek has drawn attention to the contribution of foreign investors to the recovery process of reserves.

In Summary:

Exchange rate movements in Turkey are closely monitored. Despite the rapid increase in the USD/TRY parity after the recent elections, it has been following a stable trajectory in recent days. The Central Bank's position as a buyer in the foreign exchange market appears to be a move to support reserve improvements. However, there is no clear evidence of direct intervention by the Central Bank. It is important to closely monitor developments in the markets and follow the statements of relevant institutions.

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According to a recent survey, central banks worldwide have started losing confidence in the US dollar. The survey conducted by institutional asset manager Invesco involved 57 central banks, who believe that America's geopolitical behavior and rising debt levels threaten the reliability of the dollar. The survey highlights concerns among central banks, particularly regarding America's relations with Russia and its stance on the Russia-Ukraine conflict. #GOLD #DOLLAR #USA

Threats to the Reliability of the Dollar:

The freezing of Russian assets by Western countries has raised questions about the reliability of the US dollar as the dominant reserve currency worldwide, and high levels of American debt have also raised long-term stability concerns. A significant portion of the participating central banks in the survey believes that American debt levels adversely affect the dollar.

The Rise of the Yuan and the Attractiveness of Gold:

While only a few central banks expect the Chinese yuan to become a global reserve currency, central bankers plan to increase their renminbi assets over time due to its "strong performance and non-correlated returns." According to Invesco's report, central bankers believe that gold has become more attractive as the allure of the dollar diminishes. #CentralBank $PAXG

Gold: The New Favorite Safe Haven:

The majority of participating central bankers (58%) consider gold to have become more attractive. Drawing on the example set by America's freezing of Russian reserves, central banks prefer to increase their physical gold holdings. Physical gold assets have experienced the highest growth compared to 2020, while the use of gold ETFs has declined.

A central bank in a Western country states, "Gold has played a critical role in the past few years: we increased our exposure 8-10 years ago and kept it in London, using swaps and yield enhancement, but now we have transferred our gold reserves back to our own country because its role in being a safe haven asset has increased."

In Summary:

Central banks worldwide express a decrease in their confidence in the US dollar. America's geopolitical behavior and high debt levels raise concerns that question the reliability of the dollar. Consequently, central banks are turning to gold as a more attractive asset and increasing their gold reserves. The rise of gold as a safe haven brings about changes in central banks' asset preferences. These developments can have significant effects on global financial markets and the balances of reserve currencies.