Economy in Turkey: How did the Dollar and Euro start the day on January 5, 2024?

The depreciation of the Turkish Lira against the Dollar and Euro continues. The USD/TRY started the day at 29.845, and the EUR/TRY at 32.667.

Until the elections, foreign exchange rates were suppressed by the Central Bank’s backdoor sales and off-market regulations. After the elections on May 28, these rates were set free.

The USD/TRY, which was below 20 before the elections, surpassed 23 a week later. The exchange rate stabilized between 23.4-23.6 until the Central Bank’s meeting on June 22 but rose again to over 25 due to insufficient interest rate hikes. Similarly, the EUR/TRY, which was below 21.5 before May 28, exceeded 25 about a week after the elections. The exchange rate, which balanced between 25.6-25.8 until the interest rate decision in June, surpassed 27 after the decision. Despite fluctuations, exchange rates continue to rise.

As of now (9:00 AM), the USD/TRY is progressing at the level of 29.845, and the EUR/TRY is progressing at the level of 32.667.”