Turkish lira crashes to historic low against US dollar

QAMISHLI, Syria (North Press) – Turkish lira cashed to record low against the US dollar and euro after Erdogan defended a recent sharp cut in interest rates and vowed to win his “economic war of independence”.  

On Tuesday, Turkey’s lira crashed to a historic low of more than 13,00 against the US dollar and 14,50 against Euro. 

Recently, the Turkish President, Recep Tayyip Erdogan has defended a recent sharp cut in interest rates and vowed to win his “economic war of independence” even as more orthodox economists avoid his approach.  

Turkey’s currency has been in a downward slide since early 2018, thanks to a combination of geopolitical tensions with the West, current account deficits, shrinking currency reserves, and mounting debt — but most importantly, a refusal to raise interest rates to cool inflation.   

In a relevant context, videos on social media showed demonstrations in the Turkish capital, Ankara and also in Istanbul, calling for the government to resign, after the sharp drop in the Turkish lira in the currency market.

The demonstrators chanted slogans condemning Turkish President Recep Tayyip Erdogan, calling for the resignation of the AKP government and the holding of early parliamentary elections.