The Turkish Lira has accelerated on Thursday their downward slide and fell to a record low against the Dollar and the Euro. A Dollar was worth, at 7.28 Lira, roughly 3 percent more. Thus, the Turkish currency has lost against the Dollar this year, 18 percent of their value. Also to the Euro, the Lira, slumped further, in turn, a Euro was worth with 8,6220 Lira also about 3 percent more.
The causes of the downward pressure looks Commerzbank analyst Antje Praefcke, especially in the lack of Inflation of the Central Bank, as well as a real interest in the deep red area.
“We assume, therefore, that the Lira will tend to remain under pressure. The Central Bank will continue to try to stem the Liraschwäche, despite their low foreign exchange reserves.“ The downward pressure on the Lira could be discharged as at the end of July in sudden violent movements, warned Praefcke.Euro in Turkish Lira EUR/TRY -- -- (--) Deutsche Bank Forex vwdCrossrates 1T 1W 3M 1J 3J 5J To the detail view for USD/TRY -- -- (--) Forex vwd 1T 1W 3M 1J 3J 5J For detail view
The consumer price Inflation in July amounted to 11,76% and a key rate of the Central Bank of 8.25 percent. Thus, the real interest rates for Lira-Aleger are negative. Cheap credit have led in Turkey to a rise in home sales. As well as in other countries, the Turkish government is trying, through the Corona-crisis hard hit the economy to revive. The number of credit-financed home sales rose in July, in the year-on-year by 1000 per cent, as government data shows.Updated Date: 06 August 2020, 08:19