On 29 July, the Turkish lira (TRY) traded at 1.68 per USD, the weakest level since April 2009, as the widening current account continues to put pressure on the currency. In addition, tensions stemming from the debt crisis in the Eurozone periphery are further contributing to the depreciation, as investors are gradually switching to safer assets. The end-of-month reading represented a 2.4% depreciation over the 1.64 TRY per USD tallied on the last day of June. On a year-on-year basis, the lira depreciated a whopping 10.0% versus the U.S. dollar. Despite the explicit Central Bank strategy to narrow the current account deficit through the weakening of the lira, high currency volatility has prompted the Bank to take action. The latest move to ease pressure on the currency was taken on 9 August, when authorities announced a reduction of the interest rates at which banks are able to borrow foreign currency in the foreign exchange deposit market. This measure came on top of the previous decision to hold daily USD selling auctions when deemed necessary, and a reduction in the reserve requirements ratio on foreign exchange deposits to avoid immediate currency depreciation.
Turkey Exchange Rate
Central Bank takes action on lira depreciation
August 1, 2011
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Turkey Economic News
October 25, 2016
The Real Sector Confidence Index published by the Central Bank decreased from September’s 106.5 to 101.7 in October, the lowest reading in one year.
October 21, 2016
The consumer confidence index, published by the Statistical Institute in cooperation with the Central Bank, decreased slightly from 74.3 in September to 74.0 in October.
October 20, 2016
At its 20 October monetary policy meeting, the Central Bank of the Republic of Turkey (CBRT) decided to keep the marginal funding rate unchanged at 8.25%.
October 13, 2016
The current account balance recorded a USD 1.8 billion deficit in August (July: USD 2.7 billion deficit).
October 10, 2016
In August, industrial production expanded a calendar-adjusted 2.2% compared to the same month last year.