Back to the point where the rate hike was made: Dollar/TL at 32.38

Following the Central Bank of the Republic of Turkey's (TCMB) decision on March 21 to raise interest rates by 500 basis points, the policy rate was increased to 50 percent. The dollar/TL exchange rate, which had hit a historic high of 32.42 on March 20, rose to 32.38 on the final trading day of the markets before the elections, approaching the level it was at before the interest rate decision.

On March 21, the day interest rates were raised from 45 percent to 50 percent, the exchange rate had fallen below 32 liras. 

The dollar/TL exchange rate, which has followed a volatile course since March 21, began to rise during the final week before the elections.

Starting the week at 32.17, the dollar/TL showed a steady increase throughout the week, climbing to 32.38.

Thus, the exchange rate has shown an increase of nearly 40 kuruş since March 21, when the interest rate hike was implemented.

According to the Foreks website, in the free market, the dollar/TL is trading at 32.88 as of 16:53 on Friday, March 29.

News Source: 12punto