ISTANBUL (REUTERS) – The lira of Turkey, which has lost about 30% of its value versus the dollar this year, hit a record low of 18.75 on Monday, moving lower following a period in which Ankara adhered to policies that strictly controlled the currency rate.
The lira was 0.35% lower than Friday’s finish of 18.6850 at 05:18 GMT. In 2021, it lost 44% of its value, primarily as a result of unconventional rate decreases as inflation increased.
Due to a programme that guards deposits in the lira from currency depreciation, Ankara’s indirect sales of foreign currencies to the market, and a heavy hand in controlling credit in the economy, the currency has become less responsive to policy choices.
Despite another easing cycle this year that saw the policy rate slashed by 500 basis points to 9% despite inflation near 85%, the lira has stayed largely steady since August.