Azernews.Az

By Gunay Hasanova

The tense situation in Turkey has led to a sharp fall in the lira exchange rates, which has fallen to new lows against the euro and the dollar.

The Turkish Lira hit another all-time record low against the USD at 3.3126 early on November 16, the Turkish newspaper Hurriyet reported.

Experts consider that the criticism by Turkish officials towards the EU, as well as anti-terrorist operations conducted in the country have an impact on it.

Prior to this, the lowest rate of the Turkish lira was recorded on November 8 as an influence of the U.S. presidential elections and the refusal of the deputies of the Democratic Party to participate in the meetings of the Turkish Grand National Assembly (TBMM) .

Foreign currency reserves of Turkey's Central Bank declined by 4.1% on September 23-30 and made $99 billion.

The decrease in foreign exchange reserves amounted to $4.3 bln. The cause of the decline in foreign exchange reserves associated with decline factor of bank and treasury accounts in Central Bank.

However, the weakening of the lira, according to some experts, will help the country's economy increase the competitiveness of goods. As it is known, Turkey's economy is based on services, tourism, and food. In this respect, the weakening of the lira will have a positive economic effect. The opportunity of business activity falling in Turkey is not ruled out in the case of the lira rate decrease for a long time.

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Gunay Hasanova is AzerNews’ staff journalist, follow her on Twitter: @gunhasanova

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