Ella 
The Turkish currency faced a significant setback as it hit an unprecedented low against the U.S. dollar on Tuesday, January 2, surpassing 29.70 liras per dollar. At 12:58 p.m. local time, the lira reached 29.77 against the dollar, ultimately stabilizing at 29.74. This marked a substantial depreciation of approximately 37 percent compared to its value in the previous year.
Economist Alaattin Aktas expressed concerns about the trajectory of the dollar exchange rate, predicting a further increase to around 40 liras per dollar by 2024. Aktas emphasized that aligning the dollar exchange rate with the economic requirements would lead to an increment proportional to inflation, resulting in an estimated 40 liras.
The alarming situation is compounded by Turkey’s soaring inflation, which reached an alarming 61.98 percent in November. Recently released official data from the Turkish Statistical Institute further underscores the severity of the economic challenges faced by the country in 2023.
This significant devaluation of the Turkish lira against the U.S. dollar raises questions about the economic stability of the nation and prompts concerns about the potential impact on various sectors. Observers and financial experts are closely monitoring the developments, emphasizing the importance of decisive economic measures to address the ongoing challenges and restore confidence in Turkey’s currency.
