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The currencies of Iran, Lebanon and Turkey have been depreciating almost daily, with a negative forecast for the near future. Brazilian investors can benefit from betting exactly against these coins. For example, to profit from the fall of the Turkish lira, you can invest in the dollar-Turkish lira or euro-Turkish lira currency pairs. But is it worth investing in devalued currencies? Apps like MetaTrader 5 are useful to bring investors closer to the forex market. Just take a look! 4h1o5b
an overview 4w1r58
Recently the Turkish lira hit its lowest level against the dollar and there are concerns that the presidential and parliamentary elections scheduled for mid-May could further exacerbate the currency's slide. The price of the lira has crossed the mark of 19 units per dollar, compared to just 4 units per dollar in 2018.
The devaluation of the lira is a result of the local economic scenario, as the country faces high inflation. Raising interest rates is the key to controlling inflation, however, the turkish central bank has maintained the rate at 8,50%. In Brazil, the basic interest rate, known as Selic, is at 13,75%.
The annual inflation that had reached 85% in the last month of October — 2022 - slowed down to 50% in March 2023 due to cheaper imports of commodities power. Turkey historically faces high trade deficits that increase dollar outflows from the country. In the Forex market, the two most common currency pairs involving the Turkish currency, the lira, are USD-TRY e EUR-TRY. Let's look a little more specifically at some currencies.
Lebanese Lira 6k371l
To the south of Turkey lies Lebanon, a country facing a constant devaluation of its currency. According to World Bank, the Lebanese economy experienced negative growth of 21,4% in 2020, followed by inflation of 155% the following year. The Lebanese pound has been heavily impacted by political instability in the country. Recently, there was a wave of popular protests in Beirut, the capital of Lebanon, which resulted in the burning of bank branches and even the house of the president of the country's bank association.
The exchange rate remained fixed between 1997 and 2019, but since then, the pound lost more than 90% of its value, hampering the ability of the Lebanese to buy essential products, especially imported ones. In addition, the war in Ukraine has affected global trade in many essential goods, leading to an increase in food prices. Any increase in raw material prices further worsens the economic scenario.
Iranian Rial 10113z
The performance of the Iranian Rial is significantly linked to oil exports, with significant variations in the price of oil indicating the strengthening or weakening of the currency. International economic sanctions imposed against Iran also affect the value of the rial. During the Covid-19 pandemic, the world economy took a heavy hit, affecting not only oil prices but most other economic activities as well.
A barrel of oil was traded at negative prices, which led to a collapse in oil markets around the world. In Iran, the local currency — the iranian rial — suffered a significant devaluation against the US dollar. The dollar now trades at a very high level against the rial, with an exchange rate of 500.000 rials compared to 40.000 rials less than half a decade ago. This can be a big problem for Iranians who need dollars to trade and travel abroad.
Although it is easy to trade the Turkish Lira, trading the Iranian and Lebanese currencies can be
pose a challenge because few online brokerages offer them.
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