Turkish Lira gains massively on Thursday after CB raises interest rate

The Turkish Lira gained massively on Thursday afternoon after the Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (PPK) hiked its policy interest rate by 750 basis points to 25 percent leading to a decline in exchange rates. 

The surprise move leaves the policy rate at its highest level since 2019, and sent the Turkish currency to its strongest level since mid-July.

The Dollar which started the day at 27.20 dropped to 25.25 liras. The Dollar has been trading for around 27 lira for a long time. This will be the lowest rate since June 26 when it was sold for 25.87 against the Dollar.

The Euro which started the day at 29.60 dropped to 28.09 liras, about 4.84% decrease. The Euro has been trading for around 30 lira for some time now.

The Pounds Sterling which started the day at 34.10 dropped to 32.00 liras. Sometime days ago, the Pounds sold for over 35TL.

The new policies is expected to help rein in inflation.