Turkish Lira Plummets as Protests and Political Crisis Escalate

The Turkish Lira continues to decline sharply as political unrest and widespread protests grip the nation. As of today, September 8, 2025, the currency has reached a new low against the U.S. dollar, trading at approximately 45.30 Lira per dollar, reflecting a 5% drop over the past week.

This financial turmoil comes amid escalating protests against President Recep Tayyip Erdoğan"s government, which critics accuse of authoritarianism and economic mismanagement. Demonstrators have taken to the streets in major cities, including Istanbul and Ankara, demanding political reforms and accountability.

The Lira"s depreciation is not a new phenomenon; it has been in freefall for several years, exacerbated by high inflation rates, which currently hover around 80%. Many analysts highlight that the government"s economic policies, including unorthodox interest rate cuts, have undermined investor confidence. As previously reported, similar situations in other countries, such as the recent political upheaval in France following the resignation of Prime Minister François Bayrou, serve as a reminder of how political instability can impact economic stability.

The ongoing protests are expected to lead to further volatility in the Lira, with economists warning that without significant political change, the currency may face additional pressure. Observers are closely monitoring the situation, as the government"s response to the unrest could determine both the immediate and long-term economic outlook for Turkey.