The Turkish lira plunged because inflation stayed high while rate policy and central-bank independence were repeatedly in doubt, and Turkey relies on foreign f…
TurkStat reported 29.73% annual inflation for September, the first reading below 30% since November 2021. The independent ENAG estimate was 46.61%.
The Capital Markets Board ordered 131 funds holding about $20.4 billion liquidated, and the main stock index fell 16.65% that month.
An Ankara appeals court annulled the CHP's 2023 congress. Stocks fell about 6% and USD/TRY reached about 45.78.
The lira briefly fell to about 42 per dollar. On 17 April the central bank raised its rate to 46% from 42.5%.
The central bank lifted the one-week repo rate to 50% under Governor Fatih Karahan, who took over on 3 February 2024.
After the 2023 elections, Governor Hafize Gaye Erkan and Finance Minister Mehmet Simsek began a return to conventional policy.
TurkStat's annual figure was the highest in 24 years. The independent ENAG group estimated 185%.
The central bank cut from 19% to 14% in four months while inflation passed 21%. Erdogan then announced deposit protection.
Two days after a 200 bp hike to 19%, Erdogan replaced Agbal by decree. It was the third governor change since mid-2019.
The US doubled tariffs on Turkish steel and aluminium over the Brunson case. The lira touched 7.24 per dollar on 13 August.
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