2025.09.0312:19:38UTC+00Turkish Lira Hits New Low

In September, the Turkish lira continued its steady depreciation, reaching a new low of 41.1 against the USD. The central bank, acting through state-supported commercial banks, remained actively involved in the foreign exchange market, aiming to exert firm control over the currency. Compounding these issues, political tensions escalated following an Istanbul court's decision that cash payments influenced the outcome of the Republican People’s Party’s (CHP) 2023 Istanbul provincial congress, leading to the annulment of the leadership elected during that event. In reaction, the CHP has urged for demonstrations in Istanbul. On the economic landscape, inflation eased slightly to 32.95% in August but still exceeded market forecasts of 32.6%. Meanwhile, GDP rose by 4.8% annually in Q2 2025, marking the most rapid growth since Q1 2024, sparking discussions on the central bank’s limited capacity to reduce interest rates this month.