Third in the Turkish lira losers club

TurkeyThe exchange rate, which reached record levels in 2021, was slowed down by the measures taken in December. However, in 2022, the exchange rate began to rise again with the effect of both global and domestic developments. Especially with the launch of the Protected Depository of Currency (KKM), the increase in 2022 was not of such high volatility as in 2018 and beyond, but in a more controlled and slow manner. However, the Turkish lira became the third most depreciated currency in the world against the dollar. Although the Turkish lira, which depreciated considerably in the last two years, decreased by 1.5% against the dollar as of October 2022, it depreciated by 34.9% over the last year, mainly in the first half of the year. The dollar, which started 2022 at the 13 lira level, ended the year at the 18.70 lira level. The most depreciated currency against the dollar was the Argentine peso with 69.1%. The Egyptian lira was in second place with a depreciation of 56.9 percent. After the LT, the Pakistani rupee down 26.8 percent and the Bangladeshi taka down 21 percent.

SOLD TO THE MARKET

The effort to stabilize the exchange rate around 13.50 before the Russia-Ukraine war and then keep it at 14.80 got out of hand in May. In May, inflation accelerated both in the country and in the world, in addition, this period saw the most intense volatility of the exchange rate in the year due to the increase in interest rates by the main central banks and the appreciation of the dollar in the world. According to the accounts of the bankers who spoke to Reuters, the 100 billion dollars that the Central Bank obtained in 2022 with “new methods” were sold back to the market as an offer without being included in the reserves. Since President Tayyip Erdoğan’s son-in-law, Berat Albayrak, held the presidency of economy, the market has been intervened to stop the rise of the dollar.

The ruble gained 55 percent against TL

■ TLAgainst the euro, the euro gained 36 percent, the pound sterling 26 percent, the yuan 29 percent, the yen 23 percent and the Swiss franc 50 percent. On the other hand, the increase in the value of the Russian ruble against the TL of the two warring countries was 55 percent, while the increase in the Ukrainian currency, the hryvnia, was 4 percent. The TL lost 30 percent against the Iraqi dinar, 29 percent against the Iranian rial and 24 percent against the Bulgarian lev. The loss against the Njierya Naira was 22 percent and the loss against the South African Rand was 32 percent.