The Turkish lira keeps getting weaker against the dollar. On June 29, one US dollar equals about 46.64 lira. The euro is also very high at 53.12 lira. These numbers show a new record low for the currency. Many people in Turkey are worried about rising prices.
The lira has lost about 17 percent of its value this year. Turkey's inflation rate reached 32.61 percent in May. High energy prices have made this problem worse. The country imports most of its oil and gas. When energy costs go up, everything becomes more expensive.
Turkey's central bank has kept interest rates at 37 percent. The bank wants to control inflation and stabilize the economy. However, tensions in the Middle East have raised oil prices. If energy prices stay high, inflation might get worse. The central bank must watch the situation carefully.
Currency changes affect daily life for millions of people. If the lira continues to weaken, imported goods will cost more. People who earn in lira find it harder to save money. Experts believe the government should keep its tight money policy. Only time will tell if the lira can recover.
