Economy of Northern Cyprus

The Central Bank has ended targeting conversion from foreign currency deposits to FX-protected Turkish Lira deposits (KKM) in a bid to support the lira time deposits.

Turkey must sustain its push on production and exports to prevent the economy falling into recession even as it fights inflation, Vice President Cevdet Yilmaz said on Friday. 

Since May elections, President Recep Tayyip Erdogan's government launched a U-turn away from unorthodox policies including interest rate cuts that had sparked a lira crisis and sent inflation soaring. 

Turks will get little reprieve from a soaring cost of living this summer as economists expect prices to jump by as much as 8.5% in August, underlining Ankara's challenge as it embarks on a painful path toward more orthodox policies.

The Turkish currency started losing its value against the dollar again today and fell to a record low, local media reported.

The Turkish lira traded today at 27.01 per US dollar.

In recent days, the euro was exchanged for 29.60 TRY.

Türkiye is accelerating efforts aimed at obtaining additional foreign resources for the country in order to further strengthen its reserves, Treasury and Finance Minister Mehmet Şimşek said.

The Central Bank's net international reserves surged by $8.5 billion last week, Şimşek added in a post on Twitter, noting that this was the largest weekly increase ever on record.

Foreign investors and Türkiye watchers are keeping a close eye on the steps the new economic team will take in the period ahead.

There are expectations that portfolio inflows in to the country may increase depending on the messages sent out by those at the helm of the economy management.

Turkish President Recep Tayyip Erdogan won reelection last month despite a battered economy and a cost-of-living crisis that experts say are exacerbated by his unconventional economic policies.

The longtime leader appointed an internationally respected former banker as finance and treasury minister and on Friday named a former co-CEO of a US-based bank as head of the central bank.

Turkey's economy is at the top of the agenda as President Erdogan announced his new cabinet. Despite the message of reform and normalization that Erdogan hopes to convey with this new cabinet, markets remain skeptical as the Turkish lira continued its slide against the dollar.

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The Turkish Lira sank to a new low against the dollar yesterday, more than a week after the reelection of President Recep Tayyip Erdoğan.

The currency, which was propped up by the Central Bank before the presidential election, fell 6.7 percent to 23.16 liras per dollar in the afternoon trade.

The Turkish lira, which fell today by more than five percent, hit a new historic low against the dollar ten days after the re-election of President Recep Tayyip Erdogan, reported AFP.