September 29, 2023

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Turkish lira plummets following Erdogan’s stand for ‘economic freedom struggle’

After a significant downturn, the Turkish lira hit an all-time low on Tuesday, with President Recep Tayyip Erdogan holding back interest rates and saying that Turkey would win the “war for economic independence”.

Portfolio According to Monday’s summary The lira has already fallen 53.1% against the dollar this year, rising 18.7% last month and falling 13.3% in one week.

Photo: Anadolu Agency via HALIL SAGIRKAYA / AFP

A By Reuters Analysts have cited the possibility of a major tariff hike soon, despite Erdogan’s announcement. Recent data shows that consumer confidence is also at a low point in the country.

Erdogan has been putting great pressure on the Turkish central bank’s interest rate policy for months, and last Thursday the central bank cut its low interest rate and the president put pressure on it, prompting Erdogan to boost exports. The president held a press conference on Monday night, contradicting many analysts and saying that a tight monetary policy would not reduce inflation.

It is interesting to note that the exchange rate of the forex on Tuesday was also low, but it is not a surprising coincidence that, in addition to domestic factors, international trends are shaping the currency of emerging markets, and the strengthening dollar is not good. For Forint or Lira. .

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