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Pairing – The amount of Turkish lira (TRY) that one can buy for every United States dollar (USD).
USD – World’s most traded currency
TRY - World’s sixteenth most traded currency
New lira – In 2005, the value of the lira dropped so significantly (1.5 million TRY = $1) that a new version of the lira was issued.
Economic factors – Whereas the dollar’s value tends to remain strong because of the size of the US economy, and the fact that international trade uses the dollar as its official currency, the lira is far more susceptible to change. The economy stays strong on the carry trade, foreign money looking to earn quick profits on high interest rates, so any changes to that possibility can lead to a rapid depreciation of the lira.
Political factors – Turkey has been hoping to join the Eurozone for some time, but due to certain political issues in Turkey, combined with the economic issues within the Eurozone, have meant this has continued to be delayed. Discussions on the subject were frozen in late 2016 after a failed coup in the Turkey.
Private sector – There has been swift growth of Turkey’s private sector over recent years. Although the state remains heavily involved in banking, communications, transport and more, the rising public sector is likely to influence the value of the nation’s currency.