The Turkish currency sank to a record low against the US dollar amid local and global uncertainties.

After surpassing the resistance level of 19, $1 stood at 19.01 liras at 2 p.m. on Thursday, as per reports.

The currency has lost about 70 per cent of its value against the greenback since the beginning of 2022.

Turkish people have long been struggling against rising living costs triggered by a high inflation rate, which hit a 24-year high of 85.51 per cent in October 2022.

The inflation stood at 55.18 per cent in February, but the actual cost of living experienced by local people is even higher as the prices of many products at least doubled in the past year.

Murat Tufan, an analyst at Turkish broadcaster Ekoturk, stated the reasons behind the currency depreciation were two-fold.

One is the uncertainty behind upcoming elections in the country, he said.

“The question on everyone’s mind is what will be the monetary policy of the new administration,” Tufan stated, noting that such a period created significant uncertainty for the market.

Turkey is set to hold presidential and parliamentary elections on May 14.

The other is “the crisis that Silicon Valley Bank and Credit Suisse brought”, continued the analyst, “developing states, like Turkey, are severely impacted the most when there is a crisis in liquidity-providing countries”.

Shares of Credit Suisse, the second-largest bank in Switzerland, fell to a record low on Wednesday, slumping by more than 20 per cent. The US-based Silicon Valley Bank collapsed last week.

“Both contribute to the decline in the Turkish Lira,” Tufan added, TM reports.