Turkish Lira Above 42.6

2025-12-11 11:24 By Joana Taborda 1 min. read

The Turkish lira continued to weaken, hitting fresh record lows above 42.6 per US dollar in December and extending its year-to-date decline to roughly 23%.

The currency’s gradual, managed depreciation, ongoing since July 2023, has persisted amid renewed concerns over the country’s political outlook, which continue to dampen investor sentiment.

Markets are also watching closely for the announcement of the 2026 minimum-wage increase later this month, as it could influence next year’s inflation dynamics.

Turkey’s inflation eased more than expected to 31.07% in November, the lowest level since November 2021.

The central bank expects inflation to end 2025 at around 31% and maintained its 2026 forecast at 16%.

In December 2025, the monetary authority delivered a fourth consecutive rate cut, reducing borrowing costs by 150 bps, larger than the 100 bps move anticipated by most investors.



News Stream
Turkish Lira Hits All-time Low
USDTRY increased to an all-time high of 44.45. Over the past 4 weeks, US Dollar Turkish Lira gained 0.96%, and in the last 12 months, it increased 16.96%.
2026-03-26
Turkish Lira Hits All-time Low
USDTRY increased to an all-time high of 44.22. Over the past 4 weeks, US Dollar Turkish Lira gained 1.07%, and in the last 12 months, it increased 21.21%.
2026-03-12
Turkish Lira Maintains Devaluation Rate
The Turkish lira fell to a record low of 44.1 per USD in March, holding its steady devaluation rate by the Central Bank of Turkey after it intervened in foreign exchange markets to prevent a slide. Markets pivoted from emerging market currencies to the dollar following strikes between Iran, Israel, and US allies in the Persian Gulf. The central bank sold more than $8 billion in foreign exchange in March's first week to prevent a slide in the lira despite expectations that the fresh inflationary risks from war in the region, especially due to a surge in energy prices, drove the central bank to halt its cutting cycle. Additionally, the TCMB halted reverse repo auctions, driving banks to lift the lira overnight reference rate to 40%. On top of that, confidence on the suspension of the rate-cutting cycle was attributed to a bounce in the headline inflation rate during February to 31.5%, its first increase since September.
2026-03-12