The Turkish Lira continues to nosedive against the strengthening US dollar amid concerns about the Central Bank’s capacity to slow down the inflation rate which has hit double digits.
The lira has devalued by 17 percent to date, making it one of the worst-performing emerging market currencies.
“This is driven by a global environment that is continuing to deteriorate, characterized by higher U.S. Treasury yields and a stronger dollar,” said İnan Demir, senior emerging economist at Nomura International, Reuters reported on May 21.
“The situation was exacerbated by the [President Recep Tayyip] Erdoğan speech last week in London and the fact that the Central Bank seems unable to act to stop the currency weakness.”
The lira also hit record lows against the euro and the yen and Turkey’s dollar-denominated bonds tumbled.
*6.12TL against British Pound