Trump's Iran decision shrink the Turkish Lira to a record low

A decision by US president, Donald Trump to pull the US out of the Iran nuclear deal on Tuesday, has greatly affected the Turkish Lira which saw it dropped to 2.7 percent since the beginning of the week.

On Wednesday, the Turkish Lira fell to a record low, dropping below 4.37 against the dollar on May 9, in the middle of increasing world geopolitical risks after US President Donald Trump decided to pull his country out of the international nuclear deal with Iran on May 8.

At the beginning of 2018, the lira traded at around 3.78 against the dollar.

The next meeting of the Turkish Central Bank’s Monetary Police Committee (MPC) is scheduled to take place on June 7, only 16 days ahead of the presidential and parliamentary snap elections.

According to Reuters, some analysts say the Central Bank may intervene before the MPC meeting to stabilise the currency. However, it is doubtful that any intervention will make a significant difference to the lira.