Chart of the Month, July 2006: TRY,EUR to USD

This month's chart is showing the development of the (new) Turkish lira towards the USD, and its steep fall in value from May this year on. As the EUR is displayed next to it, one can see that there is a certain drag from it, but still a major portion of the inflation is coming from the country itself. The internal political problems and discussions about joining the EU have taken a toll. However, the central bank intervened finally and clearly managed to overturn the situation.