How historically the lyre changes to the dollar

The exchange rate of any national currency is of interest not only for exchange traders alone, but also for ordinary consumers, especially when it comes to its connection with the US dollar. The lira to the dollar is not tied and has a floating rate, which tends to frequent and sometimes considerable differences.

Politics as an essential factor for changing the exchange rate

Asking the question - what determines the exchange rate of the lira against the dollar, it is important to understand that Turkey is consistently considered one of the most economically developed countries of the Eastern Mediterranean, and in the Middle East it can compete even with Israel, with which it is linked by long and close but not the simplest relations.

Therefore, speaking of the currency exchange rate, one should not confine oneself only to the economy, because exchange rate fluctuations are directly connected with the political life of the country, and in Turkey it is very diverse and complex.

During the twentieth century, various political events took place in the country: coups, putsches, revolutions and colonial wars. And each such major event influenced the rate of lira to the dollar. Very often, the lyre crashed the most sadly, and the economy of the country reacted to it not very well. On average, over the past two years, 1 dollar was worth 3.5 lire, and analysts predict that its decline will continue in the near future.

Currently, Turkey is heavily export-oriented and cheaper national currency in some cases can have a positive impact on production growth. In addition, demand for goods produced in the country also has a significant impact on the differences in the exchange rate of the Turkish currency.

The once great Turkey: the rate of lira against the dollar

Since the eighties of the twentieth century, when Turkey set out to open its economy to world financial capital, the United States had a significant influence on the course of reforms. At the same time, local authorities managed to create the most comfortable conditions for the development of small business, family business and medium-sized enterprises. Lira to the dollar at that time was incredibly stable, and the export potential of the country was realized in the best way.

Small businesses increased the welfare of families and those, in turn, began to invest money in the economy. The main means of investment in Turkey for a long time was considered real estate, the market of which has grown at an astonishing rate for almost thirty years and became, in the end, the second most important for the Turkish economy.

Light industry and no speculation

Enterprises, including family ones, created during the period of rapid economic growth and rapid accumulation of capital, grew quite rapidly and became already influential players in the world market. The way the lyre treated the dollar became a serious confirmation of this.

The production of haberdashery and knitwear still attracts foreign buyers to Istanbul, as local goods have earned a reputation of quality and safety, in comparison with competitors from the countries of Southeast Asia. However, with such successes in various areas of industrial production in Turkey, it has not been possible to achieve any significant place in the international financial market.

Dependence on Western corporations

Turkish capital has remained largely dependent on Western funds, which scooped up money for housing construction, erection of huge exhibition centers and trade malls.

At the same time, loans, although given to Turkey under a relatively small percentage, require a return in foreign currency, which, as already mentioned above, depends heavily on the political conjuncture. That is why it is so important to understand how the lyre relates to the dollar.

Such a strong link with European and American financiers can jeopardize the current turn in Turkey towards complete independence, primarily from the European Community. However, on the welfare of families involved in the average business, this will have the most minimal effect.