The negativity caused by the Corona virus epidemic in the global economy causes many countries’ currencies to suffer severe depreciation against the dollar.
One of the currencies that are adversely affected by the epidemic is TL. The dollar / TL, which fell below 6.75 today after seeing the 6.80 levels yesterday, is at its highest levels after the currency crisis in August 2018.
The last negative effect came from the corona virus epidemic, to TL, which has experienced sharp fluctuations against the dollar in recent years.
The dollar / TL exchange rate, which was 4.05 on April 7, had very sharp fluctuations in the past two years. It has also exceeded 7 in the intraday movement in August 2018, and declined until 5.20 in November 2018.
VERY HARD MOVEMENTS IN TWO YEARS
Turkey’s economy in 2018 year on rising inflation and current account deficit, together overheating the US central bank (Fed) reduced hot money inflows due to increases in interest rates, the Central Bank of experienced priest Brunson crisis and foreign investors with US (CBT) is growing concern also about the independence When added, the exchange rate had risen very sharply from 4 to 7.
Later, the CBRT’s 625 point interest rate increase, the solution of the Priest Brunson crisis and the decrease in the need for dollars with the economy shrinking, extinguished the exchange rate fire.
Later, when the use of the CBRT reserves to keep the rate low before the election, increasing global uncertainties and geopolitical tensions, and the cancellation of the Istanbul elections, an upward movement was observed again. The sanctions threatened by the USA due to the purchase of S400 missile defense system from Russia to Ankara caused the tension to remain high for a long time.
As of the end of 2019, with the partial recovery in the economy, the return of the central banks of the developed countries, especially the US Central Bank (Fed), to the loose monetary policy, and the tensions with the US, stability was observed in full exchange rate, this time the Idlib tension and then the corona virus epidemic. again caused the August 2018 levels to be seen.
Here is the two-year story of TL against the dollar:
THE MOST SOUTH AFRICA RAND HAS LOST VALUE
On the other hand, the depreciation of the TRY in the process, set a precedent for Turkey, which was limited compared to many of the country’s currency.
According to Reuters data, while the depreciation of the South African Rand against the dollar since the beginning of the year was 24.2 percent, the depreciation in TL was 10.1 percent in this period. During this period, the Brazilian Real lost 23.5 percent, the Mexican Peso 21.9 percent and the Russian ruble 19.8 percent. With the fall in oil prices and a record $ 113 billion depreciation in the Wealth Fund, even Norway’s currency crown dropped 15.5 percent in this period.
