Turkey’s lira hits record low against USD

Xinhua News Agency | Oct 26, 2020 at 1:15 PM

ISTANBUL, Oct. 26 (Xinhua) -- The Turkish currency dropped to a record low against the U.S. dollar on Monday, amid the COVID-19 pandemic and disputes in the international arena.

At 3:00 p.m. (1200 GMT), one dollar was traded at 8.07 Turkish liras, which has lost over 25 percent of value against the U.S. currency since the beginning of this year.

Meanwhile, one euro was traded at 9.54 liras.

The Turkish economy has long been suffering from the adverse impacts of the pandemic and high annual inflation rate, which was reported as 11.75 in September.

According to Mustafa Sonmez, an economy writer, the restrictions imposed against the spread of the pandemic in many European countries diverted international investors to find refuge in dollar.

Sonmez, a writer of over two dozen books about Turkey's economy and social events, also said on his Twitter account that Ankara's rows with several countries in the international arena also posed additional strains on the national currency.

Last week, Turkish President Recep Tayyip Erdogan confirmed that the Turkish army had been testing Russian S-400 anti-missile defense systems.

The move sparked reactions from the United States, straining the ties between the two NATO allies even further.