Experts say the ‘suppressed’ lira is reaching its true value as they forecast a continued fall against the dollar.
Turkish President Recep Tayyip Erdogan’s historic run-off re-election raised hopes for economic stability and appreciation of the Turkish lira against the US dollar. However, after the vote, the lira’s value continued rapid decline.
Beginning in 2013, the lira to dollar exchange rate began a decline, which economist Emre Alkin says was the starting point of the lira’s devaluation.
In what was called a “historical peak”, the lira’s devaluation accelerated in 2021 when it went beyond single-digit figures and reached a value of 10 in the lira-dollar rate. The Turkish lira just continues to tank. The lira has depreciated by ~23.5% vs the USD since the runoff election on May 28. Many experts believe there's only one way to save Turkey: to install a currency board like the Bulgarian one from 1997 or even better to go back to the gold standard.
TurkStat reported official inflation for June 2023 at 38.21%/yr. Prof. Steve Hanke accurately measures Turkey’s inflation at 60%/yr up to date. His measure surged past official inflation on June 7th, indicating that we can expect the official number to go up in July.
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