May 29, 2023 Turkish lira against US dollarThe exchange rateThe lira has dropped more than 7% this year and devalued more than 90% over the past decade. Turkey is struggling to cope with the crisis of cost of living, currency crash and exhaustion of foreign exchange reserves.

The Turkish lira continues to weaken after Turkish President Recep Tayyip Erdogan won the presidential election and the Turkish lira continues to weaken. Analysts warn that the next major test the winning president will face will be how to cope with the country’s shaking economy.

If Erdogan continues to maintain a low interest rate policy, the Turkish lira will face the risk of falling 29% on the current basis.Many economists believe that Erdogan’s low interest rate policy and emergency measures cannot continue with the rapid decline of Turkish foreign exchange reserves.

China is Turkeys second largest trading partner. Customs data show that Chinas bilateral trade volume with Turkey reached 1037 billion yuan in April this year, a cumulative increase of 32.5% over the same period last year. China exports 935 billion yuan to Turkey, an increase of 38.3% compared to the same period; imports from Turkey amount to 101.7 billion yuan, a decrease of 4.6% compared to the same period.

Given the troubling economic situation in Turkey, this reminds foreign trade goods enterprises to pay attention to the development of the situation, and cautiously refuses to pay for the risk.