The Turkish lira fell to its lowest level for the year against the ruble on the Moscow Exchange | November 21, 2023

Turkish lira to ruble exchange rate at auction Moscow Exchange fell to its lowest in more than a year. At trading on Tuesday, November 21, the TRY/RUB pair with settlements “tomorrow” decreased by 1.13% or by ₽0.035 – to ₽3.049 per Turkish lira. The Turkish currency has reached its lowest level since October 3, 2022.

As of 15:56 Moscow time, the TRY/RUB pair was trading on the Moscow Exchange at ₽3.068 (-0.52% or ₽0.016).

On the international Forex market, the Turkish lira has been steadily falling in price against the dollar since 2018. On January 1, 2018, the exchange rate was 3.7 liras per dollar, while as of November 21, it rose to 28.8 liras per dollar.

The reasons for this drop were, among other things, persistently high inflation in the country and the soft monetary policy of the Turkish regulator, which ran counter to the increase in rates by the central banks of most developed countries, which were trying to contain record inflation.

In 2023, the Turkish Central Bank abandoned its low interest rate policy. Turkey’s Central Bank has been tightening monetary policy since June 2023 to curb high inflation. The regulator began raising rates after President Tayyip Erdogan appointed Hafize Gaye Erkan as head of the Central Bank of Turkey. Previously, Erkan held senior positions at Goldman Sachs and First Republic.

In 2023, the Turkish regulator increased the rate five times in a row. As a result, it increased to 35%, 20 year high – since July 2003. However, such actions by the Turkish Central Bank have not yet been able to ease the pressure on the currency.

Since the beginning of 2023, the Turkish currency exchange rate has fallen against the dollar on the international Forex market by more than 54%. In early October, the lira rate rose above 28 liras per dollar for the first time amid the escalation of the military conflict in the Middle East. Relative to the euro, the Turkish lira has fallen by almost 58% since the beginning of the year.

The Moscow Exchange launched trading in the Turkish Lira – Russian Ruble (TRY/RUB) currency pair in January 2018 to provide additional opportunities for participants in foreign economic activity between Russia and Turkey – bank clients and brokers.

From March 2023, the Moscow Exchange began trading in settlement futures for the Turkish lira/Russian ruble currency pair. Market participants and their clients will have access to futures with execution in June, September and December and March. Futures for the lira/ruble pair are traded under the ticker TRY, one lot is equal to 1 thousand liras.

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