Turkish lira hit a record low of 18.7 against USD

The Turkish lira fell to a new record low of 18.7 against the dollar on Friday, extending its losses this year, which exceeded 29 percent, despite Ankara’s efforts to implement new policies to tighten control over the local currency exchange rate.

The lira fell 44 percent in 2021, mainly due to a series of large interest cuts, despite high inflation.

The currency became less affected by monetary policy decisions due to a program to protect lira deposits from currency depreciation and the government’s indirect sales of foreign exchange to the market.

The lira has remained relatively stable since August, despite interest rates being cut again this year by 500 basis points to 9 percent, despite inflation approaching 85 percent.