Well it is like any price manipulation.
Exchange rate is just another price (your currency to buy another one and vice versa).
You look at demand and supply of what sets the price and you have the answer.
In archaic economy (which is simpler to understand), a big wealthy guy can say hoard something, say apples, potatoes....when their prices are low. He can coordinate this with other wealthy people to create a cartel hoarding system.
This artificially bumps up the price during that period....and when they release together, they bring the price down in that other period etc.
Currency markets you can do this too....simply hoard the monetary instruments you want to in concert with others.
Thinking back first time I came across this was in high school final years studying economics, my economics teacher told me about (Malaysian) PM Mahathir comments on George Soros (blaming him for asian finance crisis of late 90s).
He wrote SOROS in big letters on the board and asked us if anyone knew who this guy was lol.
HOWEVER....
This is tough to pull off in any serious fashion (esp Turkey with its overall wealth size and development).... with proper regulatory environment set by the country....and proper policy set by it to hedge and structure all monetary flows and investments....with all safety valves implemented well.
There is no reason for any country institutions to over- indulge in high-liquid "hot money" (where speculation and hoard + buy + flight patterns are more prevalent in general) tactics.
Set the system up to favour cold hard money (hard investment, low liquid)....in the incentive and trust structure with the capable economists to handle it.
That way you always have 70%+ hard cold backing...so if 30% flies away (worst case scenario)...you still aren't left with horrid situation.
Turkey has done this quite badly overall in 21st century IMO, given its raw wealth per capita which is fairly good (of course concentrated in 10% of population, but that's the same everywhere).
Turkey has been very "hot money" oriented in the raw flow levels....and the cold money side has not been hedged and diversified enough (i.e too real estate and construction focused, rather than push solid industry and services).
Then the totally confused lowering of interest rates in high inflation environment.....making this all worse on top now as has been discussed enough already.
This policy signalling and overall approach is driving away good + stable and incentivising chaos and bad....in short, mid and long terms.
=================================
Overall it is simply learn and implement all the relevant lessons from before (including serious ones that faced sustained capital flight like Indonesia as
@Indos and I chatted about earlier in the thread).
Found on this page:
Iam not in favour of a low lira Iam just sharing a perspective that is all However, most of the time, Robert brooks used to be really pin point on the fair value of the lira 1€ - 4 Lira, 1$ - 3 Lira is a good and middle value.
defencehub.live
President Habibie of Indonesia took some very tough decisions in that period (just like in India for our crisis in 91).
It can be learned from as just one example. He is arguably best leader Indonesia had, though his tenure was quite short (he was not a political minded fellow).
It needs leadership + bureaucracy system that puts country over politics as far as possible....during the crunch time when the precipice starts to come into view, as it has in TR case since 2018 especially. No point staying near cliff edge like this and test where the edge is.
Just move away and get things stable, in greater interest of nation.....even if you lose political term, you will have done better for your country and be remembered better looking back.