Turkish Lira falls to record low against Euro and Dollar
Turkish President Recep Tayyip Erdoğan’s interventions and the government’s tricks of perception can’t prevent the downfall of the Turkish Lira, which is currently at a historic record low against Euro and Dollar.
Turkish Lira has been breaking record after record in losing value against the Euro and Dollar in the financial markets. Statements and hopes are not enough to revive the currency.
Turkish Lira has lost a quarter of its value against the Euro and has had over 7% losses in the first quarter. The symbolic limit of 5 Liras per Euro is not a matter of days animore. As Euro trades at 4.94 Liras, the US Dollar has increased to over 4 Liras.
The Lira has been losing value for a long time, and has taken the most recent hit from the concerns for a trade war between the US and China. The concerns have led investors into areas with safer active risks. According to experts, the Turkish Lira will continue to crash, specifically due to the increasing budget deficit and the flight of capital from the country.
The website Forex.Quebec said, “Taking into account the frequent criticisms by President Erdoğan against the high interest rates, the lack of concrete precautions strengthens the concerns about the independence of the Bank.”