International disputes, interior political situation and an unusual monetary
policy of Turkish Central bank – these are all determinants of a major decline of
Turkish lira, with its exchange rate falling already since 2013. The value curve of
lira against American dollar resembles bumpy, but still sharply declining road.
The Turkish currency has lost almost 70 percent of its value against US dollar
between 2013 and 2018 only. Yet, since the beginning of 2018 the lira showed
relative stability and did not lose much value. But then a new decline was started
when the Chairman of Turkish Central bank Murat Cetinkaya was withdrawn
during last weekend. The reason for withdrawal was the fact, that he declined to
decrease interest rates according to the wish of the President Recep Tayyip
Erdogan. This only shows that Erdogan wants to take over financial sector
completely and significantly shakes with trust in Turkish Central Bank.
Lira has immediately reacted by approximately 2 percent decline and the
currency pair USD/TRY was traded at the value of 5.76570.