Turkish lira hits record low amid economic instability

On May 18, 2026, the Turkish lira reached an all-time low of approximately 45.58 against the US dollar. Since 2010, the currency has lost nearly 98% of its value, falling from 1.50 to current levels near 0.022 dollars per lira. The annual inflation rate in April 2026 reached 32.37%, with some reports noting a rise from 30.87% in March. The Central Bank of the Republic of Türkiye has maintained its one-week repo rate at 37% while utilizing gold and foreign currency reserves to support the lira. Factors influencing this decline include high energy import costs, geopolitical tensions in the Middle East, and a widening current account deficit which stood at 39.7 billion dollars in March. In its May 14 inflation report, the central bank revised its year-end inflation target upward to 26%. Furthermore, the World Bank has lowered Turkey's 2026 growth forecast to 2.8%. To mitigate the impact of rising costs for imported goods and fuel, many citizens and businesses have increasingly turned to dollar-pegged stablecoins like USDT and USDC.