Dollar Keeps Rising Against Turkish Lira

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The Turkish lira continues to lose value against the US dollar. As of April 12, 11.15 a.m., with one US dollar is being exchanged for 5.77 Turkish liras, the dollar/lira parity is on the same level as the August-October period (October 15), when the repercussions of the economic crisis were most intensely felt.

Several elements caused the dollar to rise to these levels, such as the continuing uncertainty regarding the March 31 local elections, especially in İstanbul, the violations in the elections, the recent with the US over Turkey's purchase of S-400 missile systems from Russia, and the cancellation of the delivery of the F-35 fighter planes to Turkey.

The parity has been around 5.40 throughout March until it rose to 5.76 after JP Morgan stated that it predicts a rise in the price of the US dollar in Turkey.

The Central Bank of Turkey reduced it again to 5.32 liras through swap interventions.

While the price of the dollar was 5.32 liras on the last workday before the March 31 local elections, it was 5.61 liras one day after the polls.

Having gradually risen since then, the price of the dollar reached 5.80 liras at around 9.55 a.m. today.

The "Structural Transformation Steps" that Minister of Treasury and Finance Berat Albayrak did not help the dollar decrease. Economists made such comments that Albayrak "actually did not say anything." (HA/VK)