2026.09.1011:54:37UTC+00Turkish Lira Holds Devaluation Pace

The Turkish lira depreciated to a fresh record low of 48.5 per USD in September, extending the Central Bank of Turkey’s policy of controlled, gradual weakening of the currency through interventions in the foreign exchange market to avoid a sharper slide. As widely anticipated, the TCMB left its key policy rate unchanged for a fifth consecutive meeting in September. The bank noted that leading indicators point to a slowdown in underlying inflation in recent months, though this is offset by rising inflation risks stemming from the escalation of the Middle East conflict. In parallel, the central bank has continued selling lira in the open market to preserve the measured pace of depreciation. Additional support for the currency came as policymakers played down the likelihood of an imminent return to one-week repo auctions, which have been suspended since March, compelling financial institutions to rely on the more costly overnight funding rate.