16:03 - 25.07.2025

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July 25, Fineko/abc.az. Morgan Stanley has recorded high trading activity in the Turkish lira after its depreciation to a record high of 41.92 per dollar.

ABC.AZ informs that the Bank recommends caution due to accelerated devaluation and an overheated carry trade market, despite continued real returns.

The lira fell after the Central Bank of Turkey cut the interest rate by 300 bps on July 24, which marked a return to soft monetary policy. The currency has lost nearly 13% since the beginning of the year, but remained attractive to investors due to the benefits in real terms.

Nevertheless, the growing risk of destabilization of the carry trade is of concern to analysts, including Goldman Sachs, who previously called deals with the lira one of the most profitable, but potentially unstable.