Turkish Lira, as an emerging market currency, has attracted the attention of global traders. Especially for investors engaged in forex trading, understanding changes in Turkey's economic policies and geopolitical risks is crucial. Since 2024, the Turkish Lira has depreciated approximately 12% against the Euro and about 17% against the US Dollar. The reasons behind this deserve in-depth exploration.
Changes Brought by Turkey's New Economic Team
After Erdogan's re-election in May 2023, Turkey launched economic reforms. The appointment of new Finance Minister Mehmet Şimşek (former Merrill strategist) and Central Bank Governor Fatih Karahan (taking office in February 2024) marked significant policy shifts. The market responded positively, with Turkey's stock market achieving a 153% increase from May 2023 to August 2025.
The core achievement of the reforms is reflected in inflation control. Turkey's