“How did the dollar and euro start the day on December 20, 2023

The depreciation of the Turkish lira against the dollar and the euro continues. The USD/TRY started the day at 29.097, and the EUR/TRY started at 31.902.

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, they were allowed to float freely.

Before the election, the USD/TRY, which was below 20, surpassed 23 a week later. The USD/TRY, which stabilized between 23.4 and 23.6 until the Central Bank’s meeting on June 22, rose again to above 25 after interest rates did not increase enough. Similarly, the EUR/TRY, which was below 21.5 before May 28, exceeded 25 about a week after the election. The exchange rate, which balanced between 25.6 and 25.8 until the Central Bank’s interest rate decision in June, surpassed 27 after the decision. Exchange rates continue to rise, albeit fluctuating.

As of now (9:00 AM), the USD/TRY is advancing at the level of 29.097, and the EUR/TRY is advancing at the level of 31.902.”