Turkish lira hits all-time low against dollar, euro and pound amid political turmoil
The image shows a US 100-dollar bill placed among several 200 Turkish lira banknotes, accessed on Mar. 19, 2025. (Adobe Stock Photo)
The Turkish lira saw an all-time high depreciation on Wednesday against major currencies amid escalating political tensions following the early-morning detention of Istanbul Mayor Ekrem Imamoglu.
According to investing.com, the Turkish lira’s depreciation surpassed 12% after the market opened at 7:00 a.m., alongside a 7% drop in Istanbul stocks.
Commenting on these developments, Treasury and Finance Minister Mehmet Simsek stated on his X post that all necessary measures are being taken to ensure the healthy functioning of the markets. “Our ongoing economic program continues with steadfast determination,” he said.
Decline retreats from over 10% to 6%
Mehmet Simsek’s statements came after the Turkish lira’s sharp depreciation narrowed to an average of 6% by 08:00 GMT. While his remarks aimed to reassure markets amid ongoing political and economic uncertainty, speculation has arisen that the sudden drop following a sharp rise may have been due to central bank intervention.
At their highest levels, some major currencies and gold were recorded as follows:
- USD/TRY: 41.1000
- EUR/TRY: 44.5870
- GBP/TRY: 53.7685
- Gram Gold/TRY: 4,011.564
As of 8:45 a.m. GMT, the losses narrowed to 6% against the U.S. dollar, euro, pound, and gold, as follows:
- USD/TRY: 39.0620 (+6.49%)
- EUR/TRY: 42.7138 (+6.41%)
- GBP/TRY: 50.6426 (+6.07%)
- Gram Gold/TRY: 3,814.664 (+6.58%)
The Turkish central bank’s former chief economist, Professor Dr. Hakan Kara, highlighted the volatility in his post on X, stating, “The intervention took place,” suggesting a potential sell-off from national reserves to increase currency supply and ease high demand pressure.
Such a move could cost billions from the Turkish central bank’s official reserves, which currently stand at $169 billion. However, no official statement has been issued by the central bank or any other economic authority.
In the early hours of Wednesday morning, Istanbul Mayor Ekrem Imamoglu was detained as part of an investigation into allegations of “leading a criminal organization.”
