Middle East

Turkish lira records lowest ever decrease against US dollar

QAMISHLI, Syria (North Press) – On Wednesday, Turkish lira declined to a new record low of 9.0515 against the dollar, extending its losses after an unexpected policy rate sparked a new selloff.

The currency has declined sharply since the central bank unexpectedly cut its policy rate by 100 basis points to 18% in September.  

Analysts viewed this as new evidence of political interference by President Recep Tayyip Erdogan, who describes himself as an enemy of policy rates.

The Turkish lira has weakened nearly 18% against the dollar so far this year, exacerbating a rise to nearly 20% in headline inflation.

In late September, the Turkish currency registered the lowest record decline after the Central Bank, unexpectedly, cut the policy rate a day before.

It weakened by about 1% to stand at 8,855 against the US dollar recording the weakest level since June 2 of 2020.

The Turkish lira is among the worst performing currencies in emerging markets.

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