Turkey’s currency receded on Friday, reaching an all-time low.
The Turkish lira fell to 7,3677 against the dollar before recovering. The lira has fallen by approximately 19% compared to the U.S. currency since the beginning of the year. It is quoted around 7.17 on Friday afternoon.
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The fall is driven by peak inflation, a huge existing account deficit, and pressure from the Turkish government for reasonable credits to stimulate an already fragile economy before the COVID-19 pandemic hits.
Analysts have expressed fear about the meaning of Turkey’s reserves and the aversion of Turkish President Recep Tayyip Erdogan at maximum interest rates.
Turkey expected foreign exchange entry through tourism exports and revenues, but the pandemic severely undermined the tourism industry and disrupted world trade.
Speaking after Friday prayers at the recently changed Hagia Sophia mosque in Istanbul, Erdogan said there are “serious zigzags in the economy after the pandemic.”
He added: “I, the Turkish lira, will establish an arrangement … these are fluctuations in transitority.”
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