Turkish Lira achieved a first against the dollar in its history

Turkish Lira achieved a first against the dollar in its history
Posted on: 9 Sep 2017

The Turkish lira gained value against US dollar for seven consecutive months and achieved a first in its history with a total increase of 8.48 percent.

The TL which started climbing in February 2017, has gained value against the dollar for seven consecutive months for the first time since it was declared convertible in 1989.

The dollar, which is negatively affected by the tensions between the US and North Korea and the fact that the data disclosed in the US did not meet expectations on top of the tight monetary policy implemented by of the Central Bank of Turkey (CBT) continues to depreciate against the TL.

Due to the strengthening of TL and the possibility of interest rate increase by the US Federal Reserve (Fed) gradually decreasing, dollar/TL which went down by 1.9 dollars in August, reached 3.3999 yesterday, the lowest level of last 9 months.

Experts say even if the US Central Bank's (Fed) choses to come up with 2 interest rate hikes this year, the expectation for a third interest rate increase is not as strong any more due to low inflation in the markets and this has also accelerated the depreciation of the dollar against other currencies

Meanwhile, when the reduced real rates of return on the Consumer Price Index (TUFE) of the financial investment instruments announced by the Turkish Statistical Institute (TURKSTAT) are examined, it is seen that those with investment in dollar incurred a loss of 1.86 percent.