Turkish currency exchange rate collapsed to a new historic low

Turkish national currency rate on Thursday, December 16, updated to a new historic low, falling to 15.21 lira per U.S. unit. This is evidenced by the online data of stock trading.

The lira began trading on December 16 at 14.85 per dollar, which began to decline sharply in the morning. Thursday’s value loss is 2.7%. The lira is also falling against other currencies.

On Dec. 3, the lira fell 1.3 percent to 13.8627 per $1 in trading, approaching a record low. Bloomberg also reported that annual inflation in Turkey reached 21.3% in November against 19.9% in October. Analysts had expected inflation to rise to 20.7%. Experts said that December’s inflation will be much higher.

December 1, the Turkish lira dropped to 13.71 per dollar. The Turkish Central Bank responded with a statement on direct currency intervention “because of the unhealthy pricing, which is observed in relation to exchange rates.

On the same day Turkish President Recep Tayyip Erdogan dismissed the head of the Ministry of Finance Lyutfi Elvan and appointed Noureddin Nebati as his deputy.

Since the beginning of the year, the Turkish national currency has fallen from 7.43 to 12.5 to the U.S. dollar, and inflation for the same period, as of December 1, has accelerated from 14.6 to nearly 20 percent. Under these conditions, Erdogan replaced three heads of the Central Bank of Turkey, until the current head of the regulator Sahap Kavcioglu agreed to move to reduce the key rate – to 15% in November.