Turkish lira falls to historic low against US dollar

24 Nov '21

1 min read

Pic: Hasanugurlu | Dreamstime.com

Turkey’s currency lira dropped to an all-time low of 12.49 against the US dollar recently after President Recep Tayyip Erdogan defended recent sharp rate cuts. The lira crashed by 8 per cent on November 23. Erdogan has defended his central financial institution’s persisted interest rate cuts amid emerging double-digit inflation, now close to 20 per cent.

The lira has misplaced just about 40 per cent of its worth this 12 months, a leading global newswire reported.

Turkey’s foreign money has been in a downward slide since early 2018, due to a mix of geopolitical tensions with the West, present account deficits, shrinking foreign money reserves, mounting debt and a refusal to boost rates of interest to control inflation, the last reason being the most significant.

Erdogan has described rates of interest as ‘the enemy’, rejecting financial orthodoxy.

Semih Tumen, a former central financial institution deputy governor who Erdogan replaced in October, sharply criticised the president’s strikes.

Erdogan has taken away the facility of the Central Financial institution of Turkey to hike coverage charges.

Fibre2Fashion News Desk (DS)

More Textiles News - Turkey...