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AlwaysFree: Turkey’s Lira Continues Depreciating As Erdogan Stays Firm On Interest Rates

Author: SSESSMENTS

The depreciation in Turkey’s lira dragged on on Monday as President Tayyip Erdogan said he would not support interest rate hikes. The local currency ended the day 4.1% weaker at 12.77 against the US dollar. The lira has crashed as much as 45% against the greenback since the start of the year and hit a historic low of 13.45 last Tuesday.

Under Erdogan’s political pressure, the Central Bank of the Republic of Turkey has slashed its benchmark interest rates by 400 basis points since September to 15% despite double-digit inflation. The CBRT is widely expected to cut rates further in December. Analysts have criticised the policy as “insane” and “irrational” while calling for an immediate policy reversal.

In Monday’s remark, Erdogan said the recent Lira sell-off was not based on economic fundamentals and that the government was prepared to roll out support to boost investments via state-owned banks. The president even tasked the State Supervisory Council to identify institutions that bought large amounts of foreign currency and whether any currency manipulation had taken place.

Tags: All Products,AlwaysFree,English,Middle East,Turkey

Published on November 30, 2021 11:57 AM (GMT+8)
Last Updated on November 30, 2021 11:57 AM (GMT+8)