The national currency, the lira, lost value against the dollar and euro in 2019, and this trend is expected to continue in 2020. The value of the Turkish Lira against the US dollar was around 12% in December 2019, up to 18% by early May 2020. According to orthodox economists, the central bank's interest rate cuts cause reduced purchasing power for the currency. On the other hand, interest rate cuts and cheap loans can favor investment and thus economic growth. It remains to be seen what effects will prevail in the midterm.
Current economic situation