Inflation & Prices
Best EM Carry Trade Boosted by Turkey’s Inflation-Proofed Lira
- Officials seen maintaining backstop for lira to curb inflation
- Turkey was world’s top carry destination for much of 2024
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The Turkish central bank’s strategy for managing the lira is laying the ground for traders to enjoy even more of the world’s most profitable carry trade.
Turkey’s economic administration has been pursuing a policy of “real appreciation,” meaning that the lira weakens but by less than the rate of inflation. The aim is to minimize price pressures stemming from a weakening currency.