Appreciation of the Turkish Lira by 3% Against the Dollar

The Turkish lira rose nearly 3% against the US dollar. This happened after the Central Bank of Turkey decided to simplify its monetary policy.

Until now, the Ankara Central Bank has used a large number of interest rates to regulate the market, often with a confusing effect on the participants. The determination of main interest rate was positively welcomed by the government, which struggled with the effects of double-digit inflation in the country and managed to hold the pound below 5 per dollar.

Five days ago, the Turkish lira fell to a level of 4.76 lira per dollar, losing more than 20% of its value since the beginning of the year.

"The Turkish central bank must take immediate steps," said Turkish currency analyst Enver Erkan.

One of the reasons for the lira collapse is the concern for President Recep Tayyip Erdoğan's monetary and economic policy, who is expected to win in the upcoming June elections. Erdogan has announced interest rates as "the biggest evil" that has raised concerns in the financial sector.