The Turkish Lira witnessed a record low
The Turkish lira witnessed a new historic decline against the US dollar, as it surpasses the level of 30 TL per US dollar.
This constitutes the first decline that makes the Turkish lira exceed the threshold of thirty against the US dollar, and it rose by 0.17% compared to the previous trading session.
During the past year, the Turkish lira witnessed a decline of about 37% against the US dollar, in a context in which monetary policy makers seek to combat rising inflation by rapidly increasing interest rates.
This policy comes after a period of unconventional policy in which Turkey refused to raise interest rates despite… Rising inflation, and Turkish President Recep Tayyip Erdogan described raising interest as “the mother of all evil”.
Inflation in Türkiye exceeded 64.8% year-on-year in December, compared to 62% in November, which is a slight improvement from the previous year as it peaked at 85.5% in October 2022.
The weakness of the lira comes at a time when Türkiye’s top financial officials are gathering to make presentations to investors, focusing on monetary policy, the banking sector, assets, and financial markets.
Through this event, Türkiye aims to restore the confidence of foreign investors and attract foreign investments that have declined significantly in the last years.
More than 200 senior executives from major financial institutions, including Vanguard, BlackRock, Goldman Sachs, Morgan Stanley and JPMorgan, are scheduled to participate in the event.
