The Turkish Lira is at Its Lowest Level in 3 Weeks

The Turkish lira reached its lowest level against the dollar in nearly three weeks on Wednesday, February 24th, to remain under pressure after the government defended the policies of the former finance minister.

In light of the weakness, the central bank raised the compulsory reserve ratio for deposits in the Turkish lira by 200 basis points, saying that the move would improve the effectiveness of the shift in its monetary policy.

The Lira fell to 7.15 and stabilized at 7.12 against the US currency by 07:48 GMT, to fall from a close of 7.11 yesterday, Tuesday.

Traders said that the lira is currently recording less than its counterparts in emerging markets, having surpassed it since November, when Finance Minister Berat Albayrak and Central Bank Governor Murat Uysal left their posts.

The lira subsequently gained more than 20% thanks to expectations of tightening monetary policy and a traditional approach after years of mismanagement.