Turkish Lira Hits Record Low as Bitcoin Tops 4 Million Lira

Turkey's lira has reached a fresh record low of nearly 48.8 per dollar, while one Bitcoin now costs roughly 3.95 million lira.

The Turkish currency has been gradually losing purchasing power over the past five years, with inflation still running above 31% officially and an estimated 49.03% according to independent group ENAG.

Turkish households have been increasingly turning to alternative assets such as gold, foreign currency, property, and Bitcoin to store their wealth, with around $600 billion worth of household gold sitting outside the banking system.

The Central Bank of the Republic of Türkiye's 37% policy rate may seem high, but it offers savers a relatively thin real return against inflation, which makes up a significant portion of their purchasing power.