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Turkiye lira drops 7%, signalling move towards free market

June 7, 2023 at 4:57 pm

A man counts 100 Turkish lira banknotes in Ankara City [Tunahan Turhan/SOPA Images/LightRocket via Getty Images]

Turkiye’s lira plunged 7 per cent to a record low on Wednesday in its biggest sell-off since a historic 2021 crash, a move traders said is a “strong signal” that Ankara is moving away from state controls toward a freely traded currency, Reuters reports.

According to the report, the currency has come under increasing pressure since President Tayyip Erdogan was re-elected on 28 May.

It was trading at 23.18 against the dollar at 1500 GMT bringing its losses this year to around 20 per cent.

READ: Turkiye economy faces ‘lost year’ no matter who wins election, insiders say