The Turkish lira fell by 7% and updated a record low

On Wednesday, the fall of the Turkish lira against the US dollar exceeded 7%, which is the maximum rate of decline over the past year.

Analysts note that the exchange rate has been falling for the twelfth trading in a row, updating the historical minimum daily, amid growing concerns about the problems facing the country's new finance minister.

The current quote of the USD/TRY pair is 23.1670/$. Over the past twelve months, the lira has lost more than a third of its value.

At the same time, investors continue to invest in stocks in order to avoid high inflation. The BIST 100 stock index is growing by 3.5% on Wednesday, and over the year it has more than doubled (by 120%).

An additional factor of pressure on the Turkish national currency was Western media reports that the country's state banks stopped selling dollars to support the national currency exchange rate. This may signal that the new government of the country is abandoning expensive interventions in the foreign exchange market and will pursue a more rational economic policy.

Recall that on June 3, President Recep Tayyip Erdogan announced the new composition of the government. The Ministry of Finance was headed by Mehmet Shimshek, who already held this post in 2015-2018. This appointment raised hopes for a return to a more orthodox economic policy and a reduction in government interference in the work of financial markets.