Yesterday the Lira plummeted against the US Dollar as the Turkish Prime Minister issued a stern warning to protestors and the police raided Taksim Square in Istanbul.
At the current Exchange Rate one US Dollar is worth 1.8925 Turkish Lira as of 11:00 am GMT
The currency shed 1.2 per cent against the US Dollar, its worst decline for a year, after PM Recep Tayyip Erdogan asserted: ‘We won’t do what a handful of looters have done. They burn and destroy… They destroy the shops of the civilians. They destroy the cars of civilians. They are low enough to insult the Prime Minister of the country […] We won’t sacrifice our police to their wishes. We cannot leave the streets for anarchists and terrorists to roam […] There are those who cannot stomach Turkey becoming greater and stronger.’
The Lira climbed back to 1.8954 per Dollar
However, the Lira was able to recoup losses as the Turkish Central Bank instated specialist tightening measures in order to protect the currency from further volatility inspired by the ongoing social unrest.
The Lira climbed back to 1.8954 per Dollar as, for the first time in more than 12 months, the central bank withheld funds at its policy rate of 4.5 per cent in its daily repo auctions. It also stated that the amount could be temporarily reduced, and that it may consider foreign exchange selling auctions if necessary.
As noted by strategist Ali Cakiroglu: ‘Today’s statement from the central bank shows it is upset about the recent moves in the Turkish Lira. This will have a positive effect on the central bank and liquidity management will become much more important in the coming period.’
The Lira also benefited from the news that the Turkish economy grew by more than anticipated last month.
According to figures compiled by the Turkish Statistical Institute Turkish GDP climbed by 3.0 per cent in May, up from growth of 1.4 per cent recorded the previous month and 0.7 per cent better than economists forecast.
Turkey posted quarterly growth of 9.5 per cent in the first three months of the year.
It is reported that police used pepper spray and water cannons on protestors when they raided Taksim Square yesterday, with some demonstrators hurling firebombs at the police in response.
Economists have warned that with events potentially escalating in the days ahead further volatility in the market can be expected.
Current Turkish Lira (TRY) Exchange Rates:
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The Turkish Lira/Pound Sterling Exchange Rate is currently in the region of: 0.3399 >
The Turkish Lira/Euro Exchange Rate is currently in the region of: 0.3991 <
The Turkish Lira/ US Dollar Exchange Rate is currently in the region of: 0.5283 >
The Turkish Lira/Japanese Yen Exchange Rate is currently in the region of: 53.0035 <
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 2.9440 <
The Euro/Turkish Lira Exchange Rate is currently in the region of: 2.5158 <
The US Dollar/Turkish Lira Exchange Rate is currently in the region of: 1.8925 <
The Japanese Yen/Turkish Lira Exchange Rate is currently in the region of: 0.0189 >
(Correct as of 11:00 GMT)
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