Turkish lira renews historical minimum

Business Materials 9 June 2015 18:39 (UTC +04:00)
Turkish lira continues its decline Kanal7 TV channel reported June 9.
Turkish lira renews historical minimum

Baku, Azerbaijan, June 9

By Rufiz Hafizoglu - Trend:

Turkish lira continues its decline Kanal7 TV channel reported June 9.

Starting from the parliamentary election in the country to June 9, the exchange rate of the US dollar in Turkey has increased to 2.80 lira for $1, the TV channel said.

Lira dropped by 5.2 percent June 8. The recorded minimum figure stood at 2.75 lira for $1.

Turkish national currency is also dropping against the backdrop of the expectations of higher interest rates by the US Federal Reserve System.

Turkish lira has dropped by 18 percent against the US dollar since early 2015 [the official exchange rate as of early 2015 was 2.3491TRY/USD], which is one of the sharpest drops of national currencies in the developing economies.

Turkey's Central Bank carried out intervention worth $2 billion throughout 2014 in order to keep the exchange rate of Turkish lira at a stable level, however this attempt was unsuccessful.

Turkey's Central Bank adopted a decision in February 2015 to reduce the key interest rate from 7.75 percent to 7.5 percent. Turkish President Recep Tayyip Erdogan said that this step is insufficient. He criticized the Central Bank urging it to further reduce the rates citing the low oil prices that contribute to Turkey's economic development.

This statement also became a reason for the decrease of Turkish lira against the US dollar, according to the experts.

The official exchange rate for June 9 is 2.7744 TRY/USD.

Edited by CN

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