The Turkish lira Exchange rate Likely to Remain under Pressure

The Turkish lira is generally abbreviated with TL and code of a TRY, is the official currency of Turkey and the Turkish Republic of Northern Cyprus. The lira, together with the related currencies of the Middle East and Europe, has their roots in the very old Roman unit of weight acknowledged as the libra. The Turks used the Ottoman lira from 1844 until the end of 1927.

Following periods of the lira attached to the French franc and the British pound; Turkish government adopted a peg of 2.8 Turkish lira equal to 1 U.S. dollar in 1946 to until 1960. With the devaluation of the currency, the Turkish lira exchange rate fell sharply against the US dollar in the next few decades. In 2001, one U.S. dollar was equal to 1,650,000 Turkish lira.

The lira, official currency of Turkey, was considered as the globe’s least valuable currency from 1995 to 2004 based on Guinness Book of Records.

The second Turkish Lira was launched on 1 January 2005, substituting the earlier lira at a price of 1 second Turkish lira equal to 1,000,000 first Turkish lira. Following the new Lira, 1 U.S. dollar was equal to 1.29 new Turkish lira in 2005.

Currently, the exchange rate of one U.S. dollar against the lira is standing around 2.93.

Turkish Currency lost its value in the last month amid the coup attempt in Turkey and a gloomy business environment. On the other hand, US dollar looks strong amid the economic growth of nearly 3.3% and strong data from manufacturing and other industries.