2024-01-30T12:32:27+00:00
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/ The US dollar stabilized against the Turkish lira during early trading on Tuesday, despite reports that interest rates in Turkey have peaked after the Turkish Central Bank raised interest rates last Thursday.
The value of the Turkish lira reached 30.36 against the dollar.
Turkey is suffering from a high inflation rate, and the Turkish Central Bank expects inflation to rise to between 70 and 75% during the month of May, compared to the rate of 65% recorded last month.
But the Turkish Central Bank expects that tightening monetary policy will lead to a decline in the inflation rate before the end of this year to 36%.
The Turkish lira has been on a steady decline since 2018, but lost much of its value in the summer of 2023 as Turkish authorities loosened their grip on the exchange rate.
The Central Bank of Turkey is expected to begin its interest rate cut cycle in the fourth quarter of 2024.