BREAKING 🚨 | Türkiye
The Turkish Lira has fallen to an all-time low against the U.S. Dollar.
The TRY/USD parity declined to 0.02245, marking a new historic low.
📉 Since peaking at 0.87140 USD in 2008, the lira has lost approximately 97.42% of its value against the dollar.
The 18-year chart shows a persistent and uninterrupted downward primary trend.
This chart reflects more than a currency movement; it represents a structural transformation in Turkey’s monetary framework. The post-2008 depreciation can be analyzed across three fundamental axes:
1️⃣ Weakening of Price Stability
Prolonged periods of negative real interest rates combined with persistently high inflation have systematically eroded the lira’s purchasing power.
2️⃣ Risk Premium and Confidence Erosion
Rising CDS spreads, capital outflows, and sustained dollarization have entrenched structural pressure on the currency.
3️⃣ External Financing Vulnerability
A structurally persistent current account deficit and substantial external financing needs have made the lira highly sensitive to global liquidity conditions.
THE BIG PICTURE
The 97.42% depreciation is not merely a nominal currency adjustment;
• A decline in income measured in USD terms
• A deterioration in wealth distribution dynamics
• A distortion in pricing behavior
• Structural dollarization pressures
This is not simply a technical low; it is the cumulative outcome of a prolonged price stability challenge within the Turkish economy.
Sustainable improvement will require credible monetary policy, anchored inflation expectations, institutional predictability, and a strengthened external balance framework.
Written by İbrahim COŞAR