Turkey: Turkish lira continues to weaken
September 1, 2011
On 29 August, the Turkish lira (TRY) traded at 1.75 per USD, which represented a 4.3% depreciation over the 1.68 TRY per USD tallied on the last day of July. On a year-on-year basis, the lira depreciated a strong 13.3% versus the U.S. dollar. The depreciation in part reflects the widening current account deficit. In addition, tensions stemming from the Eurozone debt crisis are contributing to the depreciation, as investors are gradually switching to safer assets. Despite the continued depreciation, on 8 September, Deputy Prime Minister Ali Babacan said the central bank is not ?strictly committed? to ensuring a particular level for the currency.