Protests in Turkey cause rise in dollar’s exchange rate

Photo: Protests in Turkey cause rise in dollar’s exchange rate
 / Economy news

Baku, Azerbaijan, March 12

By Rufiz Hafizoglu - Trend:

The USD exchange rate in Turkey rose to a record high over the last five weeks and reached 2.2520 Turkish liras per one U.S. dollar, Turkish Hurriyet newspaper reported on March 12.

The newspaper cited the mass protests held on March 11 in 32 Turkish cities as being a main reason.

The official exchange rate on March 12 is 2.2220 TRY/USD, according to the Central Bank of Turkey.

Last night there were mass protests in 32 Turkish cities with regard to the death of the 15-year-old Elvan Berkin who suffered a head injury during a rally in Taksim Square in May last year.

On January 28, 2014 the Central Bank of Turkey raised three key interest rates to stop further depreciation of the Turkish lira.

The weekly repurchase agreement (repo) rate was increased from 4.5 percent to 10 percent. The loan rate was raised from 7.75 to 12 percent and the deposit rate from 3.5 percent to eight percent, in accordance with the Central Bank's decision.

Following this decision, the dollar's rate fell the next day by 3.3 percent to 2.2658 liras.

Previously the Turkish Central Bank carried out an intervention worth $2 billion in order to keep the Turkish lira exchange rate stable, but this attempt was unsuccessful.

Despite the efforts of the Central Bank, the Turkish lira is at a record low against the dollar.

Translated by E.A.

Edited by S.M.

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