NOURNES- If the lira falls, foreign exchange market participants believe that the Turkish lira will reach its lowest level in modern history against the dollar. The Treasury Department's decision to sell $ 6 billion in foreign currency bonds and the central bank to further restrict foreign exchange swaps failed to turn the page. The lowest recorded exchange rate of the lira against the dollar was 7.24, which was recorded in August last year.
This year alone, the lira has lost 16 percent of its value against the dollar.
Following the dismissal of the former head of the Central Bank of Turkey and the efficiency of the new team, the interest rate reduction cycle in Turkey has begun. The Turkish official's remarks about the need to reduce interest rates and inflation come at a time when the International Monetary Fund has warned Turkey about the dangers of too fast a drop in interest rates. Instead of emphasizing a rapid decline in interest rates, the agency has advised Turkish officials to focus on a gradual and sustained reduction in interest rates and inflation, as a rapid decline in rates could increase the vulnerability of the economy to future crises.
The Central Bank of Turkey has now reduced interest rates by one percent to 8.75 percent. In the latest round of Istanbul currency trading, the dollar rose 0.55 percent to 7,086 lira.
Turkey now has the highest number of people with coronavirus in the Middle East, with 3,465 people dying from Qovid-19.
Since 2018, Turkey's national currency has depreciated by 45 percent against the US currency. For other major currencies, the euro was trading at 7.681 lira and the pound at 8.809 lira.
ISNA
NOURNEWS