Value of USD against Turkish lira was at 3.89 today (January 11). After a short loosening at noon, USD value skyrocketed, reaching 3.94 by late afternoon.
And, this record low value of TL against USD came despite the recent efforts of Turkey’s central bank, where interest rates were kept low while forex reserves were tried to be boosted in an attempt to cope with the decline in the value of TL.
Turkey’s economy slowed down significantly following the coup attempt of July 15 of last year. Even though the attempt was unsuccessful and the ruling party remained in power, the state of emergency declared in its aftermath and efforts of the government to carry out a massive purge in both state and civil institutions have consequently had hindering effects on the economy of the country as a whole.
On top of that, increase in the frequency of deadly terror attacks at various parts of the country, including almost all major cosmopolitan cities – such as Ankara, İstanbul, İzmir, Diyarbakır, Gaziantep – and the latest controversy over the parliamentary debates and voting on a constitutional amendment which would boost the power of President Erdoğan even further have all contributed to the negative outlook of the economy in the country.