After a steep dive in the value of the Turkish lira this week, economist Mahfi Eğilmez wrote in a column that the Turkish economy is now in a state where it cannot be predicted.
The lira reached record lows against the dollar on Thursday, dropping as far as 7.32 against the greenback, losing 19 pct. of its value so far in 2020.
“Recently, the dollar has been losing value against other currencies apart from the lira, and as a result the euro is gaining value. Since the euro is in the second reserve currency position, and gold is the favored tool of complicated situations, they are filling some of the places that the dollar has emptied together [with gold and euros],” Eğilmez wrote in his Aug. 5-dated column.
“It is not easy to predict in an environment with so much complexity and such impact. But it is possible say that today’s outlook will last, with some ups and downs, at least until the US presidential election and even until February if Trump loses the election.”
“After this what will happen? Unfortunately forecasting this is impossible, because things are no longer predictable. In an unpredictable economy, due to the fact the risks increase, this means that expenses will also increase,” Eğilmez wrote.