Turkish lira plummets against dollar and gold as Russia invades Ukraine

The Turkish Lira dropped in value to more than 14 to the dollar and the price of gold skyrocketed after Russia invaded Ukraine in the early hours of Feb. 24

Duvar English

The invasion of Ukraine by Russia has had immediate impacts on the Turkish economy. The lira plummeted in value to above 14 to the dollar, while the price of gold skyrocketed and BitCoin plummeted to new lows. 

The price of a barrel of oil also rose to more than $100 for the first time in nine years. In the midst of an energy crisis, this is sure to hit the Turkish economy.

Gold is seen as a “safe investment” and is therefore attractive in times of crisis. A gram of gold was valued at 870 liras when the markets opened in Istanbul and rose to 887 liras as of 11 am on Feb. 24 An ounce of gold leaped from $1,894 to $1,945. 

For months, the Turkish government has issued currency sell-offs to keep the Turkish lira below 14.0 to the dollar since the currency crisis in December. On the morning of Feb. 24, however, the lira broke 14.0 - seen by many as a critical point - landing at 14.19 as of 11:20 am. 

The Euro and the Pound Sterling were also up, at 16.19 liras and 19.33 liras, respectively. 

The crisis did not spare cryptocurrencies, either. Bitcoin lost 6.35% of its value in the last 24 hours - a single Bitcoin is now worth $34,900. Ethereum fared worse, losing 9.37% of its value and landing at $2,347 per unit.