[fa icon="calendar'] Aug 15, 2018 @ 04:01 PM / by Meleah Paull

Istanbul, Turkey as seen during AIRINC's recent on-site cost of living survey. Photo depicts landscape view from Galata Tower.

The Tumult of the Turkish Lira

The Turkish lira has had a volatile year and an especially tumultuous past week. In July, the Central Bank of Turkey alarmed investors by keeping interest rates steady even as CPI annual inflation rose to double digits. Confidence slumped further as the Turkish government encouraged citizens to convert dollars and gold to lira, without success. At the same time, the United States announced an increased tariff on steel and aluminum, to which Turkey responded with a boycott of US electronics and tariffs on a range of other US goods. Investors concerned about the Central Bank’s independence and the growing trade disputes sought calmer markets, prompting the currency to hit a record low of 7.2 TRY to the US dollar on Monday, weakened from 3.8 TRY to USD at the beginning of this year.

The lira has regained some of its value since that low and the Central Bank has promised to take “all necessary measures” to maintain financial stability but the future remains uncertain. We will continue to monitor the situation ahead of our next data review in September.

Looking for help, advice, or both?

Click below to speak with us today about how these changes will impact your employees.

Learn More

 


Join now to stay informed!


 

Topics: Currency Volatility, foreign currencies, ALERT, Currency Devaluations, Insights and Experience, Turkey

Meleah Paull

Written by Meleah Paull