Turkey Lira Value Plummets... Intraday Record Low Against Dollar (Update)

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] The value of the Turkish Lira is plummeting to an all-time low despite intervention by the central bank.

As of 1:12 PM Ankara time on the 6th (local time), the exchange rate of the Turkish Lira against the US Dollar stands at 7.2614 Lira. During the day, the rate surged as high as 7.2775 Lira, rising about 3.2%. Despite the weakness of the dollar, the Lira's value sharply declined, causing the exchange rate to spike.

The Turkish Lira exchange rate had surged to around 7.19 Lira in early May before stabilizing, but it began rising sharply again from the end of July.

This phenomenon occurred because investors, concerned about Turkey's shortage of foreign exchange reserves, the rapid increase in foreign currency-denominated bond issuance, and the possibility of economic sanctions from the European Union (EU), have been selling off the Lira.