Why has US Dollar Turkish lira rate exceeded 8.11, breaking new record

After exceeding 8 pounds yesterday, the dollar/TL, which was also on the rise this morning, renewed its historic peak with 8.10. Euro / TL is trading at 9.58. Uncertainty about the package of support in the country ahead of the US election, and pressure on markets from rising case numbers, especially in Europe, continue to drive rate increase. US stock markets recorded their strongest drop in 1 month yesterday, while Asian stock markets continued to decline today.

President Tayyip Erdogan had gathered 350 thousand people from all over Turkey in Istanbul for prayers in Hagia Sophia and sent them back to their hometown, while the Coronavirus outbreak had not yet passed. On October 26, the same day the Coronavirus outbreak started to spread again, the Republic Day of October 29 was banned by the Republic on the grounds of “public order”. On the day the president banned the Republic Day celebration, the Turkish lira fell to the worst value in its history against the US dollar; 1 dollar rose to 8 Turkish liras, 1 euro rose to TL 9.5. On the same day, Erdogan who got angry at French President Emmanuel Macron’s remarks on Muslims, called for a boycott of French goods.

However, it seems the administration has not shown any reaction against Salman’s declaration of a boycott of Turkish goods. Also Erdogan’s government had declared three days of mourning when his father (the Saudi King) had died.