The Turkish lira has hit an all-time low against the US dollar. According to Bloomberg, Ankara sold $14 billion in US Treasury bonds to support the lira. The central bank raised its 2026 inflation forecast from 16% to 24%.
Economist Khalid Karimli says: "Inflation in Turkey directly affects the prices of goods imported by Azerbaijan. The lira's depreciation has blocked investment inflows."
According to the State Customs Committee, in the first four months of 2026, Azerbaijan's exports to Turkey fell by 4.9% and imports by 5.7%.
