Turkish Lira Hits Record Low Against Dollar as Central Bank Ceases Reserve Support

Shafaq News/ The Turkish lira plummeted to a historic low of 26.10 against the U.S. dollar early on Tuesday amid low liquidity hours. This decline came after officials and bankers revealed that the central bank had halted using reserves to bolster the currency.

As of 0437 GMT, the lira displayed marginal stability, holding steady at 26.05, unchanged from its previous closing level on Monday, according to data from Reuters.

Since the beginning of this year, the lira has experienced a significant depreciation of over 28%. This depreciation can be attributed mainly to President Recep Tayyip Erdogan's reelection in late May, after which he shifted away from his previously unconventional economic policies.

The Turkish economy remains vulnerable as the lira faces ongoing challenges in the foreign exchange market. Investors and analysts continue to closely monitor developments in Turkey's economic policies and their potential impact on the currency.