The surprise decision of the Central Bank yesterday created a shock effect on the market.
After the interest rate cut by the Central Bank, the Turkish Lira started to lose value again against the exchange rate and continues to lose value rapidly.
After the Central Bank’s decision yesterday, there was a decrease in sellers’ willingness to sell hazelnuts against the pressure of the exchange rate to reduce export prices. Most factories refused to sell after this decision. This situation may indicate that hazelnut prices may increase in TL terms. However, the price increase in TL terms is heavily suppressed by the exchange rate.
It is not clear how the free market will take shape in the coming days. Fast hazelnut purchases by TMO and the producers’ desire to sell hazelnuts to TMO are also factors in the uncertainties that may occur in the free market in the long run. Many companies do not accept long-term contracts or offer higher-than-normal prices.
Let’s see if the exchange rate pressure on export prices can overcome the uncertainties experienced or to be experienced in the free market.