Turkish Lira Reaches New Low, Becomes Second-Worst Currency

The Turkish state bonds and the lira have declined following a 49% increase in the minimum wage, which is expected to contribute to a new wave of inflation. The government has raised the net minimum wage for 2024 to 17,002 lira (578 dollars) to alleviate living costs. This adjustment is at the upper end of the 40-50% range that, according to Goldman Sachs and Morgan Stanley, may lead to further tightening of monetary policy by the Central Bank.

The lira has depreciated by 0.2%, reaching 29.4509 to the dollar. This year, the value of the Turkish lira has fallen by 36.5% against the dollar, making it the second worst currency among developing countries, according to Bloomberg. The worst currency is the Argentine peso.