European banking giant Societe Generale advises short position on Turkish lira
Societe Generale (SocGen), a French multinational banking and financial services company, has advised its investors to take a short position on the Turkish lira, as the Central Bank of the Republic of Türkiye (CBRT) is not expected to implement an interest rate cut until February 2025.
The French bank shared its short-term projections on the Turkish lira following CBRT Governor Fatih Karahan’s presentation of the latest inflation report on Friday, which included an upward revision of year-end rate estimates.
In its report, SocGen noted: “Reserve levels now exceed foreign holdings in Turkish equities and government bonds.”
SocGen recommended a three-month position on the Turkish lira, with a buying level of 34.36 and a corresponding sell on the U.S. Dollar.
The bank anticipates an 8% profit in this position and has set a stop-loss level at ₺35.05.