Turkish Lira Begins to Significantly Depreciate

On December 20, 2021, following the measures announced by Turkish President Recep Tayyip Erdoğan, the Turkish national currency, the lira, recorded its first notable depreciation against the dollar. In recent months, the exchange rate of the Turkish lira fluctuated between 14.5 and 14.7 lira per dollar. On May 9, the exchange rate of the dollar reached and surpassed 15 lira, reports Ermenihaber.

By May 10, during the day, the price of the American currency had changed from 15.9 lira to 15.25 lira. The trend of increase continues. It is important to recall that at the end of 2021, the dollar's exchange rate set a historic record, exceeding 18 Turkish lira.

In an effort to stabilize the situation, the president of Turkey announced a package of economic measures known as a program for compensating deposits linked to the dollar exchange rate. This program not only compensates holders of lira deposits for losses incurred due to fluctuations in the dollar exchange rate but also provides for exporters a stable future exchange rate and includes a number of other measures.

With the implementation of this program, alongside billions of dollars injected into the market from the reserves of the Central Bank of Turkey, it has been possible to maintain the exchange rate around 14.5 lira in recent months.