Saudi Press

Saudi Arabia and the world
Saturday, Jul 05, 2025

Turkish lira turns bearish anew

Turkish lira turns bearish anew

The Turkish lira has remained largely in limbo declining by 1.7 percent on Wednesday, wasting gains posted over the past week. The renewed decline of the national currency has deepened traders' worries with respect of the state monetary policy following a spate of drops in the operations last week and the current one.
The official Anadolu news agency said rate of the US dollar at start of Wednesday's operations was bearish as compared to yesterday's closing, in the range of 11.3,745 lira against 11.5,048 in the end of yesterday's session.

The greenback moved up in Wednesday's early hours, exceeding 12 lira and posting 12.0,740 by a difference of 0.2,717 points. The news agency noted that the lira that increased by more than 50 percent in past week after state intervention in the market shed 38 percent of its value this year.

President Recep Tayyip Erdogan, last week, declared incentives for depositors to transform their deposits into the Turkish lira. Accordingly, the state treasury and the central bank would compensate for the losses incurred due to the declining value of the lira.

According to a central bank document sent to banks on Monday, it will support these forex-protected lira deposit accounts by not applying required reserve ratios on them. It will impose a higher commission on banks when the transfer from forex accounts to lira accounts does not exceed a certain level.

The Turkish lira had reached an unprecedented low level, trading at $18.4 before Erdogan made this declaration, following months of bearing rates due to fears from mounting inflation.Turkey's lira weakened by as much as 2% on Tuesday, extending sharp losses seen a day earlier and eroding massive gains made last week, as worries about the country's monetary policy weighed on sentiment.

Sovereign dollar-denominated bonds came under pressure on Tuesday with many issues snapping multi-day winning streaks in thin trade and the 2030 bond slipping more than 1 cent in the dollar, Tradeweb data showed.

Annual Turkish inflation is forecast to have hit 30.6% in December, a Reuters poll found, breaching the 30% level for the first time since May 2003 — six months after Erdogan's AK Party first came to power.

In December alone prices are expected to have surged 9%, the poll showed, with the affect of lira weakness likely to be felt in the coming month too.

Turks did not sell dollars in large quantities on Monday and Tuesday last week, according to official data that suggested they had played little role in the gains. The central bank has cut its policy rates by 500 basis points to 14% since September, despite inflation rising to more than 21% in November.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
×