Today: Sunday, 2 October 2022 year

The lira collapsed due to the decision of the Central Bank of Turkey to lower the rate by 13%

The lira collapsed due to the decision of the Central Bank of Turkey to lower the rate by 13%

The Turkish lira weakened sharply against the dollar after the decision of the Central Bank of Turkey to cut the rate to 13%.

The Turkish lira has collapsed against the dollar to its lowest level in eight months. Now the national currency is trading at 18 lira per dollar.


According to the agency, the markets took the rate cut as a signal that the fight against inflation has ceased to be the main goal of the Turkish regulator.


In early August, the website of the country’s statistical institute (Turkstat) reported that consumer prices in Turkey increased by 79.6% in annual terms in July. It is noted that inflation in July was the highest since September 1998. At the same time, analysts predicted the figure slightly higher than the current value – at the level of 79.8%.


Later, the Ministry of Finance decided to work out the possibility of replenishing the National Wealth Fund (NWF) with the help of currencies of friendly countries. We are talking about the fact that the NWF can be replenished with such currencies as yuan, rupee and lira and others.