Turkish Lira volatility hits 10-month low with True Value Strategy

Shafaq News/ Turkish Lira’s short-term currency fluctuation levels have dropped to their lowest point in 10 months, following the implementation of the True Value Strategy.

On Tuesday, the three-month volatility index for the Turkish lira fell to its lowest level since March 19, according to Bloomberg News, though it remained steady on Wednesday.

As of Wednesday morning, the lira was trading at 35.7554 per US dollar, marking a 0.1% decline from Tuesday’s rate.

Notably, the Turkish government had adopted the True Value Strategy, maintaining the lira’s valuation below the inflation rate to lessen the impact of currency depreciation on consumer prices in Turkiye. This strategy includes several other measures, from adjusting interest rates, to implementing policies that reduce the budget deficit and boost foreign exchange reserves.

This strategy has contributed to stabilizing the lira against sharp fluctuations, especially during pressuring periods on emerging market currencies, due to US President Trump’s recent recently to impose tariffs on all imports into the country.