3. Turkish Lira. The Turkish lira (TL) was officially devalued by the Turkish government in February 2001 during a severe political and economic crisis. The Turkish government announced on February 21 that the lira would be devalued by 20%. The spot exchange rate on February 20 was TL68,000/$.

a. What was the exchange rate after a 20% devalu- ation?

b. Within three days the lira had plummeted to more than TL100,000/$. What percentage change was this from the pre-devaluation rate?