The lira records its lowest historical levels against the dollar in the face of electoral uncertainty in Turkey

This content was published on May 15, 2023 – 09:25
May 15, 2023 – 09:25

Istanbul, May 15 (EFE). – The lira recorded its lowest historical value against the dollar on Monday, and the Istanbul Stock Exchange opened with losses due to the possibility of postponing the election of the new president until a second round on Monday. On May 28, after the incumbent president, Recep Tayyip Erdogan, won Sunday, but without an absolute majority.

Today, the lira fluctuates around 19.6 units per dollar, which is its worst historical value, providing a temporary decline from last Friday that reached similar levels, and represents an accumulated loss of 1% since the beginning of the month.

It rose slightly against the euro, in reaction to the European currency’s decline against the US currency.

Since last summer, the lira has gradually lost value against the dollar, with only slight fluctuations, and many Turkish analysts warn that Turkey’s central bank is artificially keeping the exchange rate stable through interventions and restrictions on purchases of foreign currency by companies.

Indeed, in recent weeks, money changers in Istanbul’s Grand Bazaar began offering exchange rates that differed from the official rates for the first time in decades, with lira up to 10 percent cheaper than in a bank.

On Saturday they were already being offered for more than 23 lire for one euro, when the official exchange rate barely exceeded 21 lire, and as many as 25 were required as the selling price.

The Istanbul Stock Exchange also started the day with an initial drop of 6%, but recovered slightly after the authorities halted trading to avoid massive stock sell-offs, a mechanism the exchange has implemented several times in the past year.

In general, it still holds higher values ​​than it was at the beginning of the month, when it reached its lowest level after accumulating 15% losses in three weeks. EFE

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