Turkish lira falls to record low against U.S. dollar as BIST-100 Index recovers

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7th June 2023 – (Ankara) The Turkish currency hit an all-time low against the US dollar on Wednesday, trading at over 23 liras. The lira lost around 7% of its value in a single day, with the benchmark BIST-100 Index at the Istanbul Stock Exchange exceeding the 5,600 level on the same day and recovering its 2023 losses.

The currency also tested over 25 thresholds against the Euro in the morning before dropping to 24.85. This decline comes after Turkish President Recep Tayyip Erdogan was sworn in for another five years following an election victory on May 28 and changed almost all his cabinet members, including naming Mehmet Simsek as finance minister.

Simsek, a former finance minister and deputy prime minister under Erdogan’s government, is widely respected and expected to help restore investor confidence and fight against almost 40% inflation. He has already stated that Turkey has no choice but to “return to the rational ground,” which is seen as a sign of getting back to orthodox economic policies.