The Turkish lira continues to experience a decline in its exchange rate against the US dollar since Recep Tayyip Erdogan’s victory in the presidential elections held in May. This decline reached a new level on Sunday, raising concerns among investors in Ankara about the future of the lira’s value against the dollar.
According to international indices, the Turkish lira today reached a level of 25.22 pounds per dollar, after previously recording 23.6 pounds per dollar, indicating a decline rate of 1.41%. This decline is attributed to foreign investors’ lack of confidence in Erdogan’s victory, causing the lira to reach 20.10 per dollar. The currency has experienced a 7% decline since the beginning of the year and a staggering 90% decline over the past decade.
Many analysts believe that the Turkish government urgently needs to implement a plan to protect deposits in lira from the fluctuation in the exchange rate. Failure to do so may result in an unexpected further decline in the lira’s value against the dollar in the coming period.
In an attempt to address the situation, the Monetary Policy Committee of the Central Bank of Turkey announced last Thursday that it would raise interest rates by an estimated rate of 15% during its regular meeting. This decision comes after a 27-year period of reducing interest rates from 19% to 8.5%, which has contributed to the decline in the lira’s value.
Furthermore, the Turkish lira also experienced a decrease against the pound during today’s trading, reaching 1.22 Egyptian pounds, with an estimated increase rate of 1.49%.
The continuous decline in the exchange rate of the Turkish lira against the dollar raises concerns about the stability of the Turkish economy and the impact it may have on investors and the global market.
What factors have contributed to the decline in the Turkish lira’s exchange rate against the US dollar since Recep Tayyip Erdogan’s victory in the presidential elections?
The Turkish lira is facing a continued decline in its exchange rate against the US dollar since Recep Tayyip Erdogan’s victory in the presidential elections held in May. This decline has now reached a new level, causing concerns among investors in Ankara about the future value of the lira against the dollar.
International indices show that the Turkish lira reached a level of 25.22 pounds per dollar today, compared to the previous rate of 23.6 pounds per dollar. This indicates a decline rate of 1.41%. Foreign investors’ lack of confidence in Erdogan’s victory is believed to be the cause of this decline, leading to a rate of 20.10 per dollar. The currency has experienced a 7% decline since the beginning of the year and a staggering 90% decline over the past decade.
Analysts are urging the Turkish government to urgently implement a plan to protect lira deposits from the fluctuations in the exchange rate. Failure to do so may result in an unexpected further decline in the lira’s value against the dollar in the near future.
To address the situation, the Monetary Policy Committee of the Central Bank of Turkey announced last Thursday that it would raise interest rates by an estimated rate of 15% during its regular meeting. This decision comes after a 27-year period of reducing interest rates from 19% to 8.5%, which has contributed to the decline in the lira’s value.
In addition, the Turkish lira has also experienced a decrease against the pound during today’s trading, reaching 1.22 Egyptian pounds, with an estimated increase rate of 1.49%.
The continuous decline in the exchange rate of the Turkish lira against the dollar is raising concerns about the stability of the Turkish economy and its impact on investors and the global market.
“Erdogan’s victory may have won him the political power, but it seems to have further destabilized the Turkish Lira as it continues its downward slide. This continuous decline raises concerns about the future of Turkey’s economy and the impact it will have on its citizens.”
The continuous decline in the Turkish Lira exchange rate after Erdogan’s victory raises concerns about the future stability of the country’s economy. Urgent measures need to be taken to restore confidence and address the underlying issues affecting the currency.