The Turkish Lira experienced a sharp decline, reaching a new all-time low against the US dollar in recent trading sessions. This movement underscores persistent anxieties regarding Turkey’s economic management and the independence of its central bank.

Several factors contribute to the Lira’s weakness:

• High Inflation: Turkey continues to grapple with elevated inflation rates, eroding the purchasing power of the Lira.
• Unconventional Monetary Policy: The central bank’s approach to interest rates, often at odds with conventional economic wisdom, has undermined investor confidence.
• Geopolitical Risks: Regional instability and strained international relations add further pressure on the Turkish economy.

Analysts suggest that a credible shift towards more orthodox monetary policies is necessary to stabilize the Lira and restore investor trust. The central bank’s upcoming decisions will be crucial in determining the currency’s future trajectory.