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  • Lira is trading at the lowest level since August 2018. 
  • Worsening of fiscal accounts is weighing over Lira. 

Turkey’s Lira (TRY) continues to take a beating on worsening fiscal balances.

The local unit has dropped to 6.9366 per US dollar at press time to hit the lowest since August 2018. Back then, Turkey was facing a debt crisis and currency crisis due to Lira’s slide to a record low of 7.0831. 

Lira has declined by 3.8% so far this week and is reporting a 5% loss on a month-to-date basis. The currency is also facing the pull of gravity for the seventh straight month, having topped out near 5.50 per US dollar in August last year. 

The latest weekly slide could be associated with the recently Turkey’s fiscal data, which showed government budget deficit shot up to TRY 43.7 billion ($6.35 billion) in March, from TRY 7.36 billion in February.