USD/TRY is currently trading on its all-time high

The pair is currently trading on its all-time high and will continue its upward momentum in the following days. Turkey is in big financial trouble. The country incurred a budget deficit of $7.36 billion for the month of March. In addition to this, Turkey is losing US dollar reserves on its treasury. Moreover, the country’s central bank slashed 100 basis points on its benchmark interest rate in March. The implication of this is a weaker Turkish lira against other currencies, especially to the greenback. In recent news, Turkish President Recep Tayyip Erdogan also rejected an offer from the International Monetary Fund (IMF) for fresh financial loans. Erdogan said it was not the country’s priority. However, investors and traders see this move as a betrayal to the Turkish economy. Analysts expect that foreign funds will continue to leave the country and place their bets on the cheaper US dollar. The stimulus package by the US government and Fed attracts investors.