USD/TL Exchange Rate Broke Another Record!

USD/TL exchange rate broke another record! Turkish lira continues to depreciate after the CBRT's interest rate decision.

USD/TL recorded an all-time high, climbing to 9.6625 on Friday after the Central Bank of the Republic of Turkey cut the policy rate from 18 percent to 16 percent. While the Turkish lira was the developing country currency that lost the most value in the last two days with a decrease of more than 3% against the US dollar, the South African rand took the second place with a decrease of 1.63%. Turkey's credit default risk premium (CDS) increased by 16 basis points to 460 basis points after the interest rate cut decision, while the 10-year bond yield stood at 20.46 percent. At the meeting held on October 21, the CBRT lowered the policy rate from 18 percent to 16 percent. The general expectation of the market was a 50 basis point rate cut at the meeting.