By Azernews

By Gunay Hasanova

The rate of Turkish lira this morning was at the record low against the USD, hitting 3.1058 liras as of October 13.

Experts consider that the record low was influenced by yesterday’s US Federal Reserve meeting and Turkish Prime Minister Binali Yildirim’s announcement on constitutional reform.

Prior to this, the lowest level of the lira was recorded on July 19, after the July 15 military coup attempt when the dollar was worth 3.0789 liras.

The U.S. Federal Reserve System (FRS) is preparing to raise rates before the end of the year and increasing the flow of the capital from Turkey to the group of developing countries.

The recent devaluation of the Turkish lira was caused by political and economic developments in Turkey, as any change in the politics changes the expectations of economic entities.

Appreciation of the dollar also reduced the index of the Istanbul Stock Exchange. Currently, the main stock market index BIST-100 fell by 0.56% to 77,000 points.

Turkey is not indifferent towards the strengthening of U.S. currency because it is still among the countries actively using the dollar in foreign trade operations.

On the one hand, the current ratio of the dollar and the lira does not hamper Turkish exporters to do business without problems.  On the contrary, some experts consider that the devaluation of the lira, logically, suits it. The exchange difference in the trade is a source of additional revenue.

The weakening of the lira, according to some experts, will help the country's economy increase the competitiveness of goods. As it is known, Turkey's economy is based on services, tourism, and food. In this respect, the weakening of the lira will have a positive economic effect. The opportunity of business activity falling in Turkey is not ruled out in the case of the lira rate decrease for a long time.