The Turkish lira has set a fresh record low of 18.95 per USD

The Turkish lira has set a fresh record low of 18.95 per USD in February, following a catastrophic earthquake in southern Turkey and Syria, as well as rising geopolitical tensions between Washington and Ankara over trade with Moscow. 

The US warned Turkey about the export to Russia of chemicals, microchips, and other products that could be used in the war against Ukraine. Domestically, political and monetary policy uncertainty also weighed on the market ahead of the Turkish presidential and parliamentary elections in May, as the country struggled with a deepening economic crisis and increasing inflation.

 Latest data showed Turkey's annual inflation eased to 58% in January but remained above market expectations, adding to investors' concerns. The lira has lost more than 40% against the greenback and became the second-worst performer in emerging markets in 2022, after a 77% plunge in 2021.