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Turkish Currency Drops To New Low Against USD

The Turkish lira touched a low of 7.54 against one dollar, losing over 20 percent of the value against the U.S. currency since the beginning of this year.
Turkish Currency. Image Courtesy: TransferWise

ISTANBUL, (Xinhua): The Turkish currency dropped to a record low against the U.S. dollar on Thursday, raising concerns of high inflation and unemployment.

The Turkish lira touched a low of 7.54 against one dollar, losing over 20 percent of the value against the U.S. currency since the beginning of this year.

Yalcin Karatepe, a scholar and economist from Ankara University, said on his Twitter account that the dollar surpassed the psychological threshold of 7.50. “Foreign capital continues to exit Turkey with no new money coming,” he said.

For Mustafa Sonmez, an economy writer, the main impact of the depreciating lira will be on inflation and unemployment. “A new wave of hikes in prices is coming, and the unemployment rate will further rise,” Sonmez, the writer of over two dozen books about Turkey’s economy and social events, tweeted.

The greenback also gained value against the lira after the U.S. Federal Reserve announced Wednesday that it kept its benchmark interest rate unchanged at 0.25 percent.

Meanwhile, the continuous increase in the number of coronavirus cases across the country jeopardized economic activities, forcing Turkish authorities to adopt drastic measures and implement new restrictions.

Last week, the Turkish Interior Ministry announced that all kinds of music in restaurants, cafes, and bars across the country were banned after midnight to contain the spread of the pandemic.

Additionally, Turkey’s biggest city Istanbul on Saturday banned weddings and related ceremonies on boats on the Bosphorus Strait and suspended all outdoor concerts and festivals.

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