Saad Ullah
⬤ The Turkish lira dropped to a fresh record low against the U.S. dollar, extending a downward slide that has wiped out approximately 97% of its value over the long term. According to Barchart, the currency's persistent weakness reflects over a decade of steady depreciation, with the TRY/USD chart painting a picture of unrelenting pressure.
⬤ The numbers tell a stark story. The lira traded above 0.70 against the dollar in the early 2010s but has now slumped to roughly 0.02285. That's not a sudden crash but a slow-motion collapse, grinding lower year after year. This erosion mirrors broader economic strains, including inflation dynamics previously examined in Turkey Inflation Surges: Second Highest in G-20.
⬤ The chart reveals a relentless pattern: brief stabilization followed by fresh losses, forming lower highs and lower lows throughout the period.
⬤ Currency experts had warned of valuation risks. An earlier report highlighted concerns in Turkish Lira is Overvalued According to the Financial Expert. The purchasing power erosion parallels trends seen elsewhere, including the situation described in Canadian Dollar Price Plunges in Purchasing Power.
⬤ A currency decline of this magnitude reshapes everything from import costs to domestic price stability. For Turkish businesses and consumers, the 97% drop means the dollar buys exponentially more lira today than it did a decade ago, making foreign goods and dollar-denominated debt increasingly expensive. The latest reading suggests no reversal is imminent, with the lira's downward trajectory firmly intact.
Saad Ullah
