Turkish Lira hits fresh record lows
The Turkish Lira weakened by 2.8 percent after the interest rate hike – a new record low – as reported by Reuters
The national exchange rate of the Turkish currency has updated the anti-record during trading on the international Forex market. The Lira last traded at 25.2 against the US dollar – down about 1.3 percent from June 22nd. At its weakest level of 25.59, it was almost 27 percent weaker against the US currency in 2023, the report says.
Türkiye’s Central Bank raised its key rate by 650 basis points to 15 percent on June 22nd and said it would go further at its first meeting under new Chief Hafize Gaye Erkan, who was appointed by Erdogan after his election victory in May, according to Reuters.
The move marked a change in course after years of monetary easing, when the weekly repo rate was cut to 8.5 percent from 19 percent in 2021 as a result of the policy, despite skyrocketing inflation.
