It is the way the ball bounces. The moment you are going to replace the dollar, you suddenly run out of money, then the currency takes a nosedive. Just a few days ago, Turkey threatened to transit from the US dollar to national currencies in bilateral trade, when suddenly the lira sunk by 4 percent. Given the very unstable rate of the Turkish lira, it is difficult to say whether, for example, Iran or Russia will venture to switch to trade in national currencies.
Now let’s analyze reasons for such a rapid fall. The Turkish authorities arrested an employee of the US Embassy, Metin Topuz. In response, the US completely stopped issuing nonimmigrant visas. Such a sharp turn in relations between the two countries sent the lira into a tailspin. But even without this confrontation, the Turkish currency is going through a tough time. Amid expectations of another monetary policy tightening by the Fed, the lira was falling for seven consecutive days. The political factor only accelerated this process. Moreover, now things can get worse.
Another political scandal, this time with Russia, may develop after the official statement of Recep Erdogan that Turkey continues to support the sovereignty and territorial integrity of Ukraine and does not recognize Russia's annexation of Crimea. So, those who want to buy a cheap Turkish lira should wait as the currency is to hit new lows soon.
