Turkey’s Investor-Pleasing Currency Policy Faces Critics at Home

A combination of high interest rates and a predictable currency have made Turkey an unusually safe bet for foreign investors, but criticism of that mix is growing as exporters lose business and the economy slows.

While the Turkish lira has fallen more than 10% against the dollar so far in 2024, the worst performance among all peers after the Argentine peso, active trading by state banks has kept the depreciation steady and below the monthly inflation rate. That means the lira’s appreciating in real terms and leaves Turkish goods more costly when priced in other currencies.