The trend reflects persistent pressure on the lira, with the chart indicating a near-continuous slide, punctuated by brief periods of stabilisation. However, these phases have been short-lived, with the broader direction remaining firmly downward.Economists have attributed the sharp fall in the lira to a combination of persistently high inflation, unconventional monetary policies, declining foreign exchange reserves, and concerns over the independence of Turkey’s central bank. The currency has also come under pressure from widening current account deficits, heavy reliance on external borrowing, and repeated political and geopolitical uncertainties that have weakened investor confidence.
From relatively stronger levels in the early 2010s, the currency has steadily eroded in value, with sharper declines visible in recent years. Turkey’s low interest rate policies during periods of elevated inflation had particularly intensified pressure on the currency, accelerating capital outflows and increasing demand for foreign currencies such as the US dollar.
The latest movement underscores the extent of the depreciation, bringing the cumulative fall to around 98% over the period.
The current levels highlight the scale of the currency’s long-term weakening against the US dollar, with the lira now trading at a fraction of its value compared to 2010.
