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The Turkish lira hit the canvas on August 6, falling by around 3.5% on the day to a record low of 7.311 against the dollar.
In fact much of the talk compares the “official lira rates”, or the interbank market rate, with the “unofficial lira rates” available at the Grand Bazaar.
Nadir Doviz, for example, was by the end of August 7 buying dollars at TRY7.36 and selling at TRY7.46.
In Ankara, the Altinkaynak jewellery shop was buying at TRY7.34 and selling at 7.46.
The central bank said on August 6: “The targeted additional liquidity facilities will be phased out.”
Some analysts wonder whether Turkey will cut its official inflation figure to close the negative yield gap rather than hiking its policy rate.
Erdogan is dragging foot again to hike rates.
7 TURKEY Country Report September 2020 www.intellinews.com
