The dollar/TL, which was under pressure due to high inflation, high current account deficit and low interest rates despite low reserves, broke a new record.
After the US Federal Reserve’s (Fed) hawk messages, in the new week in which the dollar continued to rise globally, the dollar/TL rose to a record level by exceeding the 18.50 level in shallow transactions in Asian markets.
Thus, the dollar/TL has exceeded 18.50 for the first time since December 20, 2021, after the Central Bank (CBRT) cut interest rates by 100 basis points for the second time.
54.5 PERCENT LOSS OF VALUE IN TL
After the 100 basis point rate cut in September, the CBRT cut another 100 basis points last week, exceeding 80 percent. by TURKSTAT He once again gave a clear message that he would prioritize economic growth despite the alleged inflation.
The lira has lost 2.6 percent against the dollar since the first interest rate cut in September.
On a cumulative basis, the TL has lost value by 19.5 percent since the end of April, 28.5 percent since the beginning of the year, and 54.5 percent in the last year.
Last year, the Turkish lira lost more than 40 percent of its value.
With the interest rate cuts, the CBRT had placed itself in a more decisive position in the foreign exchange market, followed by the credit and bond markets. While the steps aim to direct loans to areas desired by the government, they receive harsh criticism from outsiders.