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US Dollar Turkish Lira

USD to TRY exchange rate

The Turkish lira (Yeni Türk Lirası) is the official currency of Turkey. One lira is 100 kurush. The name of currency comes from the word “libra” — so in medieval times they were called a Troy pound (measure of weight for silver).

In recent years, the Turkish lira has become one of the most popular currencies in the world, due to the active development of tourism and business in Turkey. Every year, tourists visit this country and exchange money in the local currency. Regardless of your purpose, if you want to get up-to-date information about the exchange rate of dollars to Turkish lira, use our website. You will also find USD to INR, and other pairs. 

The Turkish lira will soon celebrate its Centennial, but it is hard to call it a strong currency. In 2021, the lira lost 44% of its value against the dollar. Currently, the lira belongs to the category of exotic currencies along with the dirham or the rupee.

The lira is issued (emitted) by the Central Bank of Turkey. Over the past few years, the Turkish currency has been declining against the dollar. For example, by the end of 2021 the Turkish lira dropped by 70% against the dollar and became the weakest currency in the developing world.

In 2022, the Turkish Central Bank kept the rate at 14% most of the time, but in August it switched to a decline, and reached 10.5% per annum by October. The decline in the discount rate has been followed by a weaker lira, which has fallen 37.8% to 18.6 per dollar since the beginning of the year.

The reasons for the significant weakening of the lira were the economic situation in the country and the soft monetary policy of the local regulator.

Exchange rate of dollars to TRY has fallen five times over the past five years — from 3.68 dollars to 18.6. Annual inflation in Turkey was 83.45% in September. “A few years ago, carry trade operations were popular because of high asset rates in Turkish lira, but in the end such deals were not successful.

What awaits USDTRY in the future and is it worth investing in it?

Given high inflation in the country and the soft monetary policy of the Turkish Central Bank, the negative dynamics of the lira might continue. Under such circumstances, investing in the Turkish currency looks risky — further weakening of the lira might bring investors losses. This factor outweighs the pluses of the currency in the form of the status of “friendly” and the high trade turnover between the countries.

Buying lira seems to be a logical way to travel to the country, but as an investment tool it carries higher risks, he says. The policy of the Turkish Central Bank will remain in force for the foreseeable future and therefore investments in local Turkish assets will be very risky.

Forecasts dollar vs turkish lira

The prognosis is mixed — an interest rate hike will lead to a strengthening of the currency. If it is not possible to curb inflation, the next round of decline will affect the lira again, as it was in 2021, when it was devalued twice.

The crisis began in March 2022 when Recep Erdogan fired the head of the Central Bank Naci Agbal, who tried to stabilize the lira by raising interest rates, which contradicted the policy of the president. Under the new head of the Central Bank of Turkey in the second half of the year, despite rising inflation and tightening global monetary policy, cut rates by a total of 500 basis points, which led to the collapse of the currency.

Turkey resorted to unconventional measures to strengthen the lira — a new program to protect savings from USDTRY fluctuations was introduced along with extensive intervention in the foreign exchange market.

These measures contributed to a partial recovery of the lira at the end of December. However, contrary to the government’s promises, the lower interest rates have naturally led to a rise in inflation to 54%, and Turks still prefer dollars to the new deposit program. 

Inflation-adjusted borrowing costs in Turkey are already at negative 40%, the lowest among similar countries. In this environment, a weakened currency remains under pressure and makes Turkish debt unattractive to investors.

The tightening policy of the US Federal Reserve and a new spike in inflation due to the surge in energy costs because of recent geopolitical events make the situation for the lira even worse. In 2023, the lira can expect even more volatility as the policy of a floating USD to TRY live exchange rate regime remains a priority. Inflation expectations by the end of 2023 are 40.5%.

The situation for Turkey as global financial risks rise is becoming less and less sustainable. Given that Turkey’s balance of payments is very sensitive to energy and commodity prices, and the country is entering an election year, the rhetoric of the authorities may soon change dramatically, leading to a tightening of monetary policy and having a serious impact on the USD TRY live exchange rate.

US dollar to turkish lira on Letizo site always up to date

Many users are interested in the rate of 1 dollar in Turkish lira today to be able to plan their financial operations. On the bank’s website you can always find up-to-date information about the dollar vs turkish lira exchange rate. This allows customers to learn about the latest changes in the foreign exchange market and make informed decisions.

Also, detailed information about each currency can be found on the site. It helps to understand financial markets more deeply and use their financial resources more efficiently.

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