Coronavirus: Turkish lira hits another historic low amid pandemic

Turkish lira and US dollar bank notes are seen in this illustration. (Reuters)

Turkey's currency tumbled further Friday, hitting another record low.

The Turkish lira dropped to 7.3677 against the dollar before making a recovery. The lira is down about 19 percent versus the US currency since the beginning of the year. It was trading around 7.17 on Friday afternoon.

Visit our dedicated coronavirus site here for all the latest updates.

The drop is fueled by high inflation, a wide current account deficit and the Turkish government’s push for cheap credit to drive an economy that was already fragile before the COVID-19 pandemic hit.

Analysts have expressed concerns over the level of Turkey's reserves and Turkish President Recep Tayyip Erdogan’s aversion to high interest rates.

Turkey had been hoping for an influx of foreign currency through exports and tourism revenues, but the pandemic has sharply undermined the tourism industry and disrupted global commerce.

Speaking after Friday prayers at the recently reconverted Hagia Sophia mosque in Istanbul, Erdogan said “there are serious zigzags in the global economy after the pandemic.”

He added: “I believe the Turkish lira will fall into place ... these are temporary fluctuations."

For all the latest headlines follow our Google News channel online or via the app.

Read more:

Coronavirus: Turkish lira hits record low as forex reserves dwindle amid slowdown

Turkish lira at record low as drilling plans in Mediterranean risks more EU sanctions

Lira stumbles again for fourth straight day as Turkish assets take a hit

SHOW MORE
Last Update: Friday, 07 August 2020 KSA 20:48 - GMT 17:48
Top