Turkish Lira is still at record lows against some of the major international currencies. The currency has fallen around 45 percent against the US dollar.
On November 23, it traded at 13.45 vs. 1 USD, which was its worst performance in the current downward spiral.
On November 28, it is trading at 12.43 vs. 1 USD. Not much of a recovery, but a recovery nevertheless.
Why has Lira fallen so badly?
The low-interest rates induced by the pandemic to improve the growth rate have instead sent up inflation, currently hovering over 20 percent.
The investments and jobs promised by President Recep Tayyip Erdogan in exchange for the low-interest rates have failed to convince the money markets.
Mr. Erdogan’s said the country is waging an economic war of independence, and the central bank cannot take fiscal decisions independent of the government.
How is the situation in Turkey now?
There are reports of retailers such as Apple temporarily suspending sales in Turkey.
There were also reports of currency exchange services not exchanging the Lira at one point.
The UAE has announced an investment of $ 10 billion in Turkey, but it did not reverse Lira’s fortunes.
The Opposition leaders have called for snap elections.