Turkish lira melted by 10 percent in 1 day

Turkish lira melted by 10 percent in 1 day
Date: 23.3.2021 16:00

The change of president hit the Turkish Lira... Lira melted by 10 percent in 1 day...

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The effects of the change in the Central Bank chairman on the markets were harsh. With the start of transactions in Asian markets on Sunday night, the dollar, which rose to 8.47 in the non-volume market, decreased to 7.70 in the morning. The currency then reversed again and rose by more than 10 percent to 7.96. The euro also exceeded 9.50, with a gain of more than 10 percent. The loss in the stock market reached 10 percent.
The dismissal of the Central Bank Governor with a sudden decision upset the markets, there was a great loss of TL. While the dollar rose by more than 15 percent in the Asian market at midnight on Sunday, it hit 8.47 levels, while the euro exceeded 10 lira.
After the initial reactions in the Asian markets, the declaration by the Minister of Treasury and Finance Lütfi Elvan that "the free market mechanism will not be compromised" eased the exchange rates a little, but the decline was short. The dollar fell to the level of 7.70 after the announcement, while the euro fell to 9.15. The fall in exchange rate turned upward again towards noon. While the dollar exceeded 7.96, the euro saw the level of 9.50. The loss of value in TL exceeded 10 percent.
On Friday, the dollar rate saw the lowest level since February 25 with 7,1897, while closing at 7.21; Euro also closed the week at 8.60 liras. As it is known, the all-time record in the dollar was 8,5803, while the record level in the euro was 10.2027 in November 2020.


Despite the increase in the ounce price on Friday, the gram gold, which declined to 402.8 liras due to the decrease in the dollar exchange rate, completed the day at 405.1 liras, 0.9 percent below the previous closing. Gram gold, starting the new week with an increase, was traded at 442.1 liras, 9.1 percent above the previous closing. Quarter gold was sold for 725 liras and Republic gold for 2950 liras. The ounce price of gold found buyers at $ 1730 with a 0.9 percent drop yesterday, after completing Friday at $ 1,745.2 with a 0.5 percent increase.


Borsa Istanbul also got its share from the selling pressure in the markets after the surprise chairman change at the Central Bank. In the stock market, which opened with a decrease of 6.65 percent, the circuit breaker application was activated twice in a row. Transactions resumed at 11:08 after the half-hour break given for the second time. After the third start, losses in BIST 100 exceeded 9.3 percent, while the index was traded around 1380 points.


Treasury and Finance Minister Lütfi Elvan said in a statement that there will be absolutely no concessions from the free market mechanism and said, "The macro policy framework" prioritizing the decline in inflation "that we are implementing will be resolutely maintained until a permanent decrease in inflation is achieved. We attach great importance to the efficient and healthy functioning of the markets. In this context, there will be no concessions from the free market mechanism, and the implementation of the liberal exchange regime will continue with determination ”.


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