Turkish lira exchange rate down 6%

The Turkish lira exchange rate has dropped 6% against the US dollar following sharp surges over the past week, Report informs referring to the auction data.

The Turkish currency fell to 11.56 lira per dollar from the previous close of 10.9 lira per dollar.

On December 16, the Central Bank of Turkey decided to reduce the discount rate to 14% from 15%, which caused a sharp drop in the Turkish currency - on December 20, the US dollar reached a record 18.4 lira. However, on the evening of the same day, the fall in the national currency was replaced by a significant increase, as a result, the lira compensated for the losses of recent weeks.

In January, the Turkish currency was trading at 7.4 lira per dollar, and at the time of reaching a historical minimum, it fell by 60%.