USD/TRY: Prepare for strong volatility down the road once again – Commerzbank USDTRY Volatility Turkey Banks
The price action of the past week strongly resembles what we had witnessed during the preceding era of FX intervention and Lira support by local banks . This seems to be the only explanation for why volatility of the TRY abruptly evaporated.
As in the past, such FX intervention inevitably destroys FX reserves and proves to be unsustainable, after which things lead to equally strong volatility down the road. We have to get prepared once again.Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
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