Turkish Lira Registers New Record Low

The Turkish currency, in light of the situation surrounding the grain deal, began to depreciate against the dollar and euro, marking a new historical low on Monday. According to trading data, the Turkish lira is currently trading at around 26.31 to 1 US dollar.

Previously, the Central Bank of Turkey had raised the key interest rate from 8.5% to 15%, promising to implement a stricter monetary policy to curb inflation. However, after this move, the Turkish lira significantly lost its value, trading at the level of 26 lira per dollar.

The Black Sea grain deal concluded on July 17. Russia, which has extended the agreement regarding the corridor for Ukrainian grain ships several times since signing the deal in July 2022, has reminded that the part of the agreement relating to the removal of export obstacles for agricultural products regarding the Russian Federation has never been completed. Moscow also pointed out that although the contracts stipulated sending food to the poorest countries, a majority of Ukrainian grain has been allocated to Western developed nations.

Dmitry Peskov, the press secretary of the President of the Russian Federation, stated that Russia is ready to return to the deal, but only when the part concerning Moscow is completed.