The Turkish Lira tumbled further, hitting another record low against the dollar and Euro, despite the efforts of the country's Central Bank to prop it up. The sharp depreciation of the Turkish Lira began in early August - in just a few days, the country's national currency's exchange rate against the dollar fell by 6% to 7.37 USD/TRY. In total, the Lira has fallen by almost a third in a year.
The main reasons behind the decline of the Lira can be related to the deterioration of the country's economic situation due to the coronavirus pandemic. The crisis of the tourism sector, the reduction in fruit and vegetable exports (one of the main directions of the Turkish economy), the growing current account deficit of the balance of payments, and several other factors also effaced the national currency. The uncertainty of investors also plays a role in the background of the country's contradictory Central Bank policy.
Turkish Lira exchange rate against the dollar: