Less than two weeks after an election saw President Recep Tayyip Erdogan secure another five years in power, there seems to have been a policy change in the country regarding the lira.
After spending billions of reserves maintaining the currency’s strength in the run-up to the election, authorities now seem happy to let it fall.
Analysts are expecting further weakness from the lira over the coming weeks as Erdogan begins a shake up of his economic team.
This matters for Irish farmers, as Turkey has been a very important market for Irish weanlings. The weak lira combined with higher prices in the market may end up pricing Turkish importers out of the market here.
A year ago it cost just over 18 lira to buy a euro. A month ago it cost 21.5 lira to buy a euro. On Wednesday morning it cost almost 25 lira.
To put that another way, a 350 kg weanling bull priced at €3.00 a kg cost €1,050 last year, last month and yesterday. But to a Turkish importer it was 18,900 lira last year, 22,575 last month and 26,250 lira yesterday.