The Turkish lira held at a record low of 28.7 per USD after the central bank of Turkey raised interest rates for a fifth straight time as expected. The central bank hiked borrowing costs by 500bps to 35%, aiming to address high inflation as a component of a wider strategic shift in monetary policy. Since June, the central bank has redirected its focus from fostering economic growth to fight inflation, leading to a significant policy rate increase of 2,650 basis points. However, persistent depreciation of the Turkish lira, coupled with escalating taxes and fees, has pushed inflation higher, eroding the savings of Turkish citizens even in the face of a more stringent monetary policy. The lira has devalued by over 50% against the USD since the beginning of 2023, and inflation continues to hover above 60%.
The USDTRY increased 0.1110 or 0.39% to 28.7655 on Monday November 20 from 28.6545 in the previous trading session. Historically, the Turkish Lira reached an all time high of 29.01 in August of 2023. Turkish Lira - data, forecasts, historical chart - was last updated on November 20 of 2023.
The USDTRY increased 0.1110 or 0.39% to 28.7655 on Monday November 20 from 28.6545 in the previous trading session. The Turkish Lira is expected to trade at 29.30 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 31.22 in 12 months time.