Why is the Turkish lira losing value?

External reasons for the depreciation of TL

The depreciation of a currency against foreign currencies is sometimes caused by the appreciation of those currencies. Since the external value of a country's currency is usually measured against the dollar, it has become customary to evaluate it in terms of dollars. The Dollar Index (consisting of Dollar, Euro, Yen, Sterling, Canadian Dollar, Swedish Krona and Swiss Franc) continued to rise from the beginning of November until today, rising from 94s to 96s. If we only look at the Euro/Dollar parity, we can see the appreciation of the Dollar there as well. Euro/Dollar parity decreased from 1.16 to 1.13 in the last month. Accordingly, the Dollar has appreciated by 2.1 percent, according to the weighted average of these six currencies, and 2.4 percent against the Euro alone, since November 1st.

As the dollar appreciated against other currencies, it also appreciated against the TL. Let's calculate the depreciation of TL against the Dollar from November 1 (9.54) to today (10.73).

On November 1, 1 USD = 9.54 TL. Accordingly, 1 TL (1 / 9.54 =) was 0.105 USD

Today 1 USD = 10.73 TL. Accordingly, 1 TL (1 / 10.73 =) equals 0.093 USD.

In this period, the depreciation of TL against the Dollar becomes: 0.105 / 0.093 x 100 = 11.2%.

Since roughly 2 - 2.5 points of this is due to the appreciation of the dollar against other currencies, the remaining 9 percent depreciation should not have anything to do with the outside.