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Turkish’s Lira fell to a record low

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Turkish’s Lira fell to a record low

by Pooja Sahu
December 13, 2021
in Business
0
Turkish’s Lira fell to a record low

The Turkish’s lira has fallen to a record low amid fears that the central bank will make a further cut in interest rates later this week.

At one certain point, it was down nearly around 7% at just under 15 to the dollar, but it recovered slightly after the bank intervened in the market to prop it up.
While the currency is now worth about half its value at the beginning of the year.

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President Recep Tayyip Erdogan has pushed the central bank to keep cutting rates despite surging inflation.
Economists surveyed by Reuters expect the Turkish central bank to reduce its main interest rate from 15% to 14% on Thursday. It would be the fourth such cut in as many months.
The president and his allies argue that lower interest rates will boost Turkish exports, investment, and jobs. But many economists say the rate cuts are reckless.
Last month, the country’s inflation rate hit 21.7%.

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