The Turkish Lira observed a new low against the dollar on Sept. 23, trading for 7.684 liras against the greenback by 10 a.m. The lira observed a record low yesterday as well, dipping to 7.682 liras. Meanwhile, Turkish economist Uğur Gürses noted that the decline in exchange rates was triggered by a distrust for the economy.
Unlike what those in Ankara who are managing the economy believe, 51 percent of the economy is not psychological perception, it is trust. Empires of fear do not generate trust.
The Turkish Lira hovered near its historical low against the dollar on Aug. 31 as the Turkish statistical authority revealed a contraction of 9.9 percent in the economy. The currency has lost about 19% against the greenback this year.
The Turkish Lira barely responded to news that President Recep Tayyip Erdoğan would announce "good news" on Aug. 21 that would propel the country into "a new era." The currency showed a mere 0.07 lira drop against the dollar as experts contemplate that the "good news" is a new energy source for Turkey in the Black Sea.
Turkey's Central Bank on Aug. 19 cut the overnight limit for interbank money loans in half in an attempt to improve liquidity. The Turkish Lira has tumbled to record lows against the dollar over the last month, proving Ankara's currency interventions futile.
HDP deputy Garo Paylan has submitted a parliamentary question, asking Treasury and Finance Minister Berat Albayrak if he is thinking of resigning "after ruining the economy in two years." "During you term, citizens have become impoverished, unemployment has increased and the cost of living became unbearable. During your term, the reserves of the Central Bank and state banks have been drained,” Paylan wrote in his parliamentary question.
Economist and former Treasury advisor Mahfi Eğilmez has said that the Turkish economy is no longer predictable. "In an unpredictable economy, due to the fact the risks increase, this means that expenses will also increase,” Eğilmez wrote in a column on Aug. 5.
The Turkish Lira has devalued drastically against the dollar, reaching almost seven liras on the dollar. Ankara has invested almost $60 billion in currency interventions in 2020 to no avail, Financial Times reported on July 28.
The recent introduction of the Turkish Lira in towns of northern Syrian constitutes the final step in an assimilation policy enforced by Ankara in the region, journalist and Middle East expert Bereket Kar said. Reports have shown that cash and coins were brought in through the Turkish postal service (PTT).
42 percent of Turkish people believe the economy will be stronger next year. What is more, those who couldn’t even pay the minimum amount of their credit card bills last month, 58 percent believed that the economic situation would improve next year. Unfortunately, there is a misguided feeling of optimism around.
Turkey's swap negotiations with many countries are continuing and reports of deals reached with Japan and the United Kingdom are not true, state-run Anadolu Agency cited Treasury and Finance Ministry officials as saying on May 19. Turkey has been in talks to establish swap lines with members of G20, with more than one swap line possible, the country's Treasury and Finance Minister Berat Albayrak said early May.
Turkey’s BDDK bank regulator has dropped a trading ban imposed last week on UBS, Citigroup and BNP Paribas because they have fulfilled foreign exchange obligations promptly, according to a BDDK letter sent to banks on May 11. The short-lived ban was one of a few protective measures adopted by the government on May 7 when the Turkish lira tumbled intraday to 7.269 versus the dollar, its weakest ever.
Gold prices spiked April 13 as one gram of gold was priced at 367 Turkish Lira at the start of the day, and one ounce of gold was priced at 1686 lira.
International credit rating giant Moody's warned Turkey that negative real interest rates could hurt the Turkish Central Bank's credibility and lower investors' trust. The practice of having interest rates on loans that are lower than the inflation rate, negative real interest rates make Turkey more hazardous rather than risk-averse for investors, Moody's added.
The gold and dollar exchange rates in Turkey surged to record highs Feb. 24, dropping again on Feb. 25 after markets opened and traders started to sell. Dollar prices rose as high as 6.16 TL during the day, marking a new high for the last 9 months. The price of 1 ounce of gold reached $1,688, and the price of one gram of gold reached a record price of 334 TL.