The lira has misplaced just about 40 per cent of its worth this 12 months, a leading global newswire reported.
Turkey’s foreign money has been in a downward slide since early 2018, due to a mix of geopolitical tensions with the West, present account deficits, shrinking foreign money reserves, mounting debt and a refusal to boost rates of interest to control inflation, the last reason being the most significant.
Erdogan has described rates of interest as ‘the enemy’, rejecting financial orthodoxy.
Semih Tumen, a former central financial institution deputy governor who Erdogan replaced in October, sharply criticised the president’s strikes.
Erdogan has taken away the facility of the Central Financial institution of Turkey to hike coverage charges.
Fibre2Fashion News Desk (DS)