Turkish currency has fallen by more than 25% since the beginning of the year Background of conflict with Russia and the US October 27, 4:08
In Turkey, the currency lira has been sold further against the backdrop of increasing ties with Russia and the United States, and it has fallen by more than 25% since the beginning of the year.
Turkey is worried that the ongoing battle between Azerbaijan and Armenia will strongly support Azerbaijan, which has similar ethnicity and language, and will worsen relations with Russia, which has a military alliance with Armenia.
In October, Turkey tested Russia's surface-to-air missile system in a way that overwhelmed the opposition of the United States, and France called back the ambassador stationed in Turkey to protest over President Erdogan's remarks. There is widespread belief that sanctions may be imposed.
In addition, the Bank of Turkey was perceived at its monetary policy meeting on the 22nd as not taking currency defense measures, leaving the main policy rate unchanged, contrary to market expectations.
As a result, the currency lira was sold in the foreign exchange market, and on the 26th, the price dropped to the level of 1 dollar = 8 lira, and it has fallen by more than 25% from the beginning of the year.
Market officials said, "In addition to the stagnation of exports and tourism due to the impact of the new coronavirus, the depreciation of the lira is accelerating due to rising geopolitical risks and the postponement of rate hikes. There is growing concern in the market about the future of the Turkish economy as it leads to higher prices. "