Turkey: Turkish Lira one of worst performers in 2011
December 31, 2011
On 30 December, the Turkish lira (TRY) reached 1.89 per USD, trading 3.0% lower than the 1.83 TRY per USD recorded on the last day of November. The figure represents the lowest end-of-year level since 1998. On a year-on-year basis, the lira weakened 22.3% against the U.S. dollar in 2011, making it one of the worst performers in global currency markets. The Central Bank continues to hold foreign exchange selling auctions in order to support the currency and provide liquidity to the banking sector, having sold over USD 12 billion since it started the programme in August 2011. The Bank's governor, Erdem Basci, recently stated that monetary authorities will support an appreciation of the currency this year, although their main priority will continue to be to maintain inflation at low, stable levels. Following these remarks, the lira has strengthened somewhat recently, reaching 1.87 TRY per USD by 16 January.