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Main article: Economy of Turkey
2025: Falling to 40 lira per dollar
$1 more expensive than 40 lira is a new historical low for the Turkish currency, reached on March 19, 2025. The reason: the arrest of Ekrem Imamoglu, the mayor of Istanbul and the main opposition contender for the presidency.
In early February 2025, the Turkish lira updated the historical minimum against the dollar - the rate for the first time reached 36 lira per dollar.
2024
Depreciation to 31.5 lire per dollar
Depreciation against the US dollar by 92% over 10 years
2023
Depreciation against the dollar at the end of the year
Turkish lira became the most popular currency on the Binance crypto exchange - with a share of 75%
In early September 2023, the Turkish lira accounted for 75% of all trading to fiat money on the Binance cryptocurrency exchange. Thus, the lira became the most popular currency on the specified site. Such data are given in the study, the results of which were released on November 10, 2023. Read more here.
Depreciation to 26.9 lire per dollar
The Turkish lira continued to fall against hard currencies amid reports from traders that state-owned banks had stopped supporting it.
The lira is at 26.9 to the dollar. Thus, the depreciation from January 1 was more than 30%, which is the second largest decline after the Argentine peso among emerging market currencies.
Earlier, the Turkish lira continued its fall from June 22, 2023 after Finance and Treasury Minister Mehmet Shimshek stressed that he was in favor of a free-floating currency regime.
"Policies based on the principles of a market economy, a free currency regime and an open economy will ensure a significant inflow of capital to Turkey."
The sharp fall in the currency came amid frustration over a less significant than expected rate hike from 8.5% to 15% of Turkey's Central Bank. Turkish state banks refrain from protecting the lira as a sign of a change in policy.
As of 10:09 a.m. in Istanbul, the lira was down 0.7% at 25.0827.
The Turkish currency is headed for its 16th week of decline, the longest losing streak since 1999.
The lira fell below 20 to the dollar in May 2023 after the announcement of the results of the presidential elections, which Erdogan once again won.
2021: Falls to 15 lira per dollar
In May 2021, the Turkish lira dropped to a record low (fell 1.1% to 8.5981 per dollar) amid rising US bond yields and fears that monetary policy remains too loose to contain accelerating inflation.
Since the start of the COVID-19 pandemic, the lira has fallen in price by 44% amid a loss of tourism revenues and a sharp acceleration in inflation, which forced the population to save savings in foreign currency, crypto assets and gold.
A new wave of devaluation was triggered by large repayments of external debt coming to Turkey in June, two traders working in the country's market told Bloomberg.
The Central Bank kept the rate unchanged at 19%, saying that the rate of price growth had reached its peak. Still, the currency has weakened more than 13% in the past three months, the largest showing among emerging markets.
Consumer inflation in Turkey accelerated to 17.14% in April, driven by rising energy prices.
This means that the real interest rate in Turkey at this time is less than 2%, which puts the lira at risk of any changes in investor sentiment.
In October 2021, the Turkish lira continued to fall to an all-time low after President Recep Tayyip Erdogan hinted at a possible military offensive into neighboring Syria.
While Ankara has been involved in the conflict for years, the move threatens to increase tensions with, USA who support Kurdish fighters in the region they oppose. Turkey And this is happening at a difficult time for allies in: NATO Washington warned that it could again impose sanctions on the country.
The fall in the lira comes amid rising concerns about the prospects for rate cuts.
On October 21, the currency fell to almost 9.5 after the key rate cut from 18% to 16%. Inflation at this time almost reached 20%.
In November 2021, the Turkish lira plummeted to 10.9 lira per US dollar after the Central Bank of the republic announced an interest rate cut from 16% to 15%.
A few days later, the exchange rate sank to 12.39 lira per dollar, and in early December to 13.96.
On December 16, the rate fell to 15 lira per dollar.
2020: New lira anti-record at 8.44 per dollar
On September 28, 2020, the Turkish lira fell by 1% against the American dollar - to 7.8 lira for $1. Thus, the Turkish currency has updated another historical low against the dollar. The last time the lira dropped to a low in early September. But if then the depreciation was explained by economic factors - this happened after the release of data on the preservation of a high inflation rate in Turkey in August, now analysts explain the negative dynamics of the lira by foreign policy factors, namely the aggravation of the conflict between Armenia and Azerbaijan, the traditional ally of which Turkey is considered.
 | "There are fears that Turkey will be drawn into a new regional conflict," Timothy Ash, an analyst at the British investment company BlueBay Asset Management, told Reuters. |  |
However, experts note that the conflict between Armenia and Azerbaijan has become only a new reason for the depreciation of the lira. In 2020, it was among the currencies that showed the worst dynamics, and has already updated historical lows several times - due to the continuing reduction in Turkey's foreign exchange reserves and investors' concerns about President Erdogan's economic and political policies.
Amid the military conflict in the Caucasus, the value of Turkey's currency during the longest depreciation since 1999 fell to a new historical low. On October 26, 2020, the dollar exchange rate for the first time in history exceeded 8 Turkish lira - by 11:30 Moscow time it rose to 8.0677 lira.
In November 2020, Turkish President Recep Tayyip Erdogan dismissed the head of the Central Bank Murat Uysal. Former Finance Minister Nachi Agbal was appointed to replace the head of the Central Bank. Prior to his appointment to the Central Bank, he served as head of the strategic and budget department of the presidential administration.
The decision to resign was made against the background of a fall in the national currency. At the beginning of the week, the lira updated its record low, falling to 8.44 for $1. The Turkish currency lost 30% against the dollar during the year.
2019: Weakening lira drives exports up
Export volumes are also growing: in the second quarter of 2019, they increased by 4.5% quarter-to-quarter. This was largely facilitated by the consistently high demand for Turkish products from the Eurozone countries. In addition, the exporters played into the hands of the weakening of the lira exchange rate, as it gave them a price advantage over their closest competitors. The first half of 2019 was especially successful for manufacturers of clothing, leather products, paper, chemicals and furniture.
2018: Lira plummets to 7.24 per dollar
Due to differences in views on a number of issues of international policy, relations between Turkey and the United States in 2018 deteriorated significantly. In August 2018, the lira against the US dollar fell to a record low of 7.24 lira per dollar. The reason was the political instability in Turkey and Ankara's refusal to release American pastor Andrew Brunson from prison. The currency shock provoked an economic recession in the second half of 2018.
1924
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