Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Turkish Lira Drops to New Historic Low

Tue 26 Sep 2023 | 11:58 PM
Turkish Lira
Turkish Lira
Taarek Refaat

The Turkish lira fell to a record low of more than 27.236 against the U.S. dollar, on Tuesday, after inflationary pressures and a rise in the dollar, bringing its year-on-year losses to more than 31%.

The currency’s support for a low-interest-rate policy despite rising inflation led to a currency crisis in late 2021 and pushed inflation higher above 85% last year.

The central bank, which has stopped intervening in the foreign exchange market to support the lira since June, has reversed course and made a strong hike in two consecutive months. The lira has lost about 24% of its value since the bank’s policy change.