Economists at Wells Fargo expect further Lira depreciation going forward.

Lira depreciation to stay, and risks still tilted to the downside

We maintain our view that the path forward for the Turkish Lira is one of further depreciation and new all-time lows against the USD. 

We believe the USD/TRY exchange rate can reach 28.00 by the end of this year and 30.00 by the middle of next year.

We also believe risks to our Lira forecasts are tilted toward more weakness as a cabinet reshuffle could materialize in the coming quarters as inflationary pressures build and economic conditions do not improve amid unstable local financial markets.