Bitcoin surpasses 800,000 Turkish lira for first time

The Turkish lira lost more than 50% of its value against the dollar this year

Turkish lira notes and coins                                 
The price of bitcoin fell below $46k yesterday, which saw the value of 1 BTC push past 800,000 Turkish lira for the first time ever – Photo: Shutterstock
                                

The Turkish lira faced an unprecedented week of highs and lows (mainly lows) as it failed to strengthen against the dollar for another week. 

Data from Currency.com showed that the price of bitcoin (BTC) fell to $46.6k yesterday and briefly below $46k after falling by 0.35% during the day, which saw the value of 1 BTC push past 800,000 Turkish lira for the first time ever.

Devaluation of the lira

The Turkish lira has lost 50% of its value against the dollar (USD/TRY) since September and almost 55% of its value since the start of this year. 

The devaluation follows the Central Bank of the Republic of Turkey’s (CBRT) push to cut interest rates for the fourth consecutive month, as Turkish president Recep Tayyip Erdogan looks to boost the economy and currency in an effort to lure in investment.

Although the Turkish economy grew by 21.7% and 7.4% year-on-year in the second and third quarters of 2021 respectively, inflation within the nation has increased significantly in the past year. 

The lira fell to a new low yesterday of TRY 16.8 and then to a further 18.36 against the dollar. 

In a late meeting, President Erdogan announced that the government would cover losses incurred by lira deposit holders in cases where the lira’s depreciation against foreign currencies exceeds the banks’ interest rates, according to Al Jazeera. “Our citizens won’t need to switch their deposits from Turkish lira to foreign currency, fearing that the exchange rate will be higher,” Erdogan said.

Interestingly, after Monday’s announcement, the lira rebounded by more than 30% in less than 24 hours against the US dollar to a high of 11.09, marking it as the largest increase in the last few years.

Further reading:

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image