In Turkey, many analysts and market participants expect that by the end of 2024, $1 will be worth 40 liras instead of the current 30 liras. This means that Turkey's national currency is poised to weaken again. Currently, the Turkish currency exchange rate is about 30 liras for $1. Preliminary calculations suggest that by the end of this year, Turkey's national currency will likely decrease by almost 35%, reaching 39–40 liras. Alpaslan Cakar, the head of Turkey's Banks Association, believes that another decline is inevitable. However, Cakar considers the lira to be the right instrument capable of helping the national economy. In his opinion, the pace of the lira's decline in 2024 is unlikely to surpass inflation. Meanwhile, experts anticipate a collapse in the Turkish currency by nearly a third. Against this backdrop, Turkey's annual inflation reached 65% in December. Analysts estimate that it could rise to 70%–75% by May. Notably, the Turkish currency has been weakening for several months. At the end of 2023, the lira's exchange rate against the dollar plummeted by almost 60%. The most significant decrease was recorded in June 2023. The national currency of Turkey slumped to 26 liras from 20.8 for $1. During this period, Turkish President Recep Tayyip Erdoğan, who had just resumed office as the head of state, changed the central bank's team to stabilize the economy and the national currency. As a result, in December 2023, officials of the Central Bank of Turkey raised the key interest rate to 42.5% from the previous 8%. However, this might not be the limit. Economists believe that the regulator may increase the interest rate to 45% at its next meeting.
