Shafaq News/ Turkish Lira’sshort-term currency fluctuation levels have dropped to their lowest point in 10months, following the implementation of the True Value Strategy.
On Tuesday, the three-monthvolatility index for the Turkish lira fell to its lowest level since March 19,according to Bloomberg News, though it remained steady on Wednesday.
As of Wednesday morning, the lirawas trading at 35.7554 per US dollar, marking a 0.1% decline from Tuesday’srate.
Notably, the Turkish government hadadopted the True Value Strategy, maintaining the lira’s valuation below theinflation rate to lessen the impact of currency depreciation on consumer pricesin Turkiye. This strategy includes several other measures, from adjustinginterest rates, to implementing policies that reduce the budget deficit andboost foreign exchange reserves.
This strategy has contributed tostabilizing the lira against sharp fluctuations, especially during pressuringperiods on emerging market currencies, due to US President Trump’s recentrecently to impose tariffs on all imports into the country.