Since the historic crash last year, the central bank has used its foreign exchange reserves to stabilize the lira, which is still down regarding 25 percent this year following declining 44 percent in 2021 to become one of the worst performing currencies in emerging markets.
Unconventional interest rate cuts late last year sparked a crisis that pushed inflation to nearly 80 percent in June.
Over the past months, the government and the central bank have intensified measures to curb the depreciation of the foreign exchange rate, including placing restrictions on lending companies with more than $1 million in cash in foreign currency and implementing a state-backed foreign currency deposit scheme.
A Archyde.com poll conducted Thursday showed that the Turkish central bank’s monetary policy meeting is set to keep the benchmark interest rate at 14 percent for the sixth consecutive time, despite slowing economic growth globally and annual inflation reaching a 24-year peak.
A separate Archyde.com poll showed that inflation is expected to ease to around 70 percent by the end of the year.
More broadly, emerging markets are under pressure as investors flee to safe assets. As a result of Russia’s invasion of Ukraine, economic pressures from China and growing fears of an economic recession have led to a historic exodus of investors from emerging markets.
