31.08.202603:34:07UTC+00Turkish Lira Hits Record Low

The Turkish lira weakened beyond 48 per US dollar in August, extending its steady slide to a new record low and bringing its year-to-date losses to around 17%. The currency has been allowed to depreciate gradually as the Central Bank of the Republic of Türkiye (CBRT) deploys foreign-exchange interventions and other FX tools to curb excessive volatility and limit the pass-through from the exchange rate to inflation, thereby supporting the disinflation process while accommodating a weaker lira. Annual consumer inflation eased to 31.75% in July from 32.11% in June, though the CBRT highlighted that leading indicators signaled a temporary uptick in underlying inflation in July, leaving price pressures elevated. The CBRT also revised its end-2026 inflation forecast up to 28% from 26%, citing mounting energy and food price pressures. At the same time, the central bank kept its benchmark overnight lending rate unchanged at 37% for a fourth consecutive meeting in July, reaffirming its tight monetary policy stance.