Turkish lira falls to record low

16 March 2023

Turkey's national currency broke its record decline Thursday, falling to 19.02 lira per $1, online exchange trading data shows.


Over the past month, the Turkish lira has been trading at 18.80 to 18.88. The next decline started on March 5, after which the lira was gradually approaching 19 per 1 US dollar.


At the moment the lira is still trading at 18.99.


The Turkish lira in November 2021 dropped by nearly a third compared to the beginning of the year. The reason for this is attributed to the policy of the Central Bank, which is believed to continue reducing the discount rate under pressure from the authorities.


Turkish President Recep Tayyip Erdogan sees high interest rates as a serious problem that prevents the authorities to effectively reduce inflation and stop the fall of the lira.


Inflation has become one of the major problems of the Turkish economy in 2022. It was caused by global processes in the economy, expectations of a serious recession and a sharp fall of the Turkish lira exchange rate. Meanwhile, the leader of the republic said that in 2023 the authorities will work to bring inflation back to an acceptable level with the prospect of bringing it back to single digits in the future.

 

 

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Based on materials from TASS