Turkish Lira Slumps to Record Lows Amid Political Uncertainties

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CEIC Macro Watch Global #47 - September 2, 2015 The Turkish Lira hit a record low of TRY 2.87 per US dollar in August amid rapidly rising political chaos in the country. By August 19th, the lira had fallen by 3.6% against the USD during the month, by 23.9% since the beginning of the year, and by 32.5% in the past 12 months. Meanwhile, the benchmark weighted average compounded interest rate on the government debt securities market surged to 10.6%, increasing by more than two percentage points since the beginning of the year. Like most emerging market currencies, the lira has been dragged down by the US dollar run ahead of the anticipated interest rate hike from the US Federal Reserve. The Turkish currency has also been hit by the failure to establish a coalition government, which could lead to early elections and therefore challenge the nation’s economic growth. So far, the central bank has left its benchmark interest rate unchanged at 7.5% as the decline of food and energy prices has eased inflationary pressures. By Kamen Parushev in Bulgaria - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog

3rd September 2015 Turkish Lira Slumps to Record Lows Amid Political Uncertainties

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