The campaign started by the government against the uncontrollable incline of dollar in exchange market with “sell dollar, buy gold”, caused boom in gold import in terms of amount and monetary basis.
Importation Exceeded Billion Dollar
According to the Borsa Istanbul Mines and Gemstones Market data, gold importation increased 668% in December compared to the same period of the previous year and reached to 36.7 ton. Additionally, the highest amount has been reached after 47.1 ton of November. The campaign leaded by President Recep Tayyip Erdogan with “Sell dollar and invest gold.” suggestion caused a reverse affect apparently. After the call, the monetary value of the gold importation in December increased to 1 billion 645 million dollars with 332% increase from the same period value of 376 million dollars in December 2016.
Dollar Will Pass 4 Turkish Lira Level
Henrik Gullberg, Investment Bank Developing Market Strategist, had a scary guess about the Turkish exchange market. Gullberg states, “WE expect to see the US dollar over 4 TL barrier in the first period of 2017 before Turkish Republic Central Bank responses and stabilizes TL in the second period.” Moreover, specialists other than Nomura in Turkey share the opinion.
According to an article Bloomberg News issued, Gullberg expressed the situation with these words: “Market holders are looking for that TCMB took the inflation threat serious. Such as pushing the reel interests to a high enough level to prevent the market taking short position against lira.”