Turkish Lira for the first time in history has become cheaper than the hryvnia

Historical minimum: Turkish currency has become cheaper than Ukrainian. Photo: Jeff Djevdet/Flickr

On Monday, September 8, the official exchange rate of the Turkish Lyra dropped below For Ukrainian hryvnia. According to the National Bank, one Lira is currently estimated at UAH 0.9991. Experts explain this with prolonged economic challenges in Turkey and stabilization of the Ukrainian currency.

This event has become an illustration of significant changes in the currency dynamics of recent years. For comparison, in 2015, about 10-12 hryvnias were given for one Turkish lyre, the league said.

The new Turkish Lira was introduced in 2005 after denomination: a million old lira was exchanged for one new one, which was the basis for future financial transactions.

The fall of the Turkish lyre in world markets

Causes of lyre fall The continued depreciation of Turkey’s national currency is associated with the contradictory economic strategy of President Recep Tayip Erdogan, who has supported the reduction of interest rates for years with high inflation. After its re -election in May 2023, the authorities began to restore conservative monetary policy. However, this has led to a smooth but noticeable fall in the Lira course, which as of today is about 41.2 per USD.

As it was reported earlier, in May 2023, the Turkish currency lost in value after Erdogan’s victory in the presidential election. The course decreased by 0.5% to 20.06 per dollar, approaching the historical minimum. International analysts even then predicted the further fall of the lyre.

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