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Turkey’s currency plunges to all-time low ahead of Erdogan elections



The Turkish lira’s decline was recorded two days before the decisive second round of presidential elections to face incumbent President Recep Tayyip Erdogan. and Social Democratic candidate Kemal Kirichida Roglu.

of Turkish lira The dollar hit a record low of 19.97 lira on Friday after a brief crash that also pushed the dollar to as low as 20.3 lira, but mostly recovered during the day.

The sudden change came two days before the incumbent president’s decisive second round of Turkish presidential elections. Recep Tayyip Erdogan and the candidate of the Social Democratic Party Kemal Kilikudaroglu The former started off as a favorite to win, with an almost five-point advantage in the first round two weeks ago.

A drop of more than 1% in just two hours early this Friday morning Concern over continued declining central bank reserves according to several Turkish economic newspapers published last week.

Excluding swap deals with other countries, Turkey’s central bank’s foreign exchange reserves fell to negative territory for the first time since 2002, daily Yenicchag reported.

Since last fall, the lira’s exchange rate against the dollar has recorded a gradual, albeit slow, uneventful decline. Stabilization is artificially maintained through interventions by central banks, such as the sale of foreign currency and various “off-market” mechanisms. Daiken recalls.

Starting about a month ago, the central bank’s official exchange rate no longer matches the exchange rate offered by private money changers, and even the financial consultation page has introduced the “Grand Bazaar exchange rate,” alluding to Istanbul’s historic business center. ” is now displayed. . .

So, if the official exchange rate is 19.97 lira per dollar, the Grand Bazaar offers American banknotes at 21.4 lira and euros at 22.9 lira. According to the bank, it is worth 21.4 lira.

Source: Biobiochile

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