SULAIMANI (ESTA) — The Turkish lira fell as much as 7% to a new record near 15 to the dollar on Monday, gripped by worries over President Recep Tayyip Erdogan’s risky new economic policy and prospects of another interest rate cut on Thursday.
The lira slid as far as 14.99 against the U.S. currency, losing 7.3% of its value since Friday’s close of 13.889. By 0826 GMT, it had trimmed losses in volatile trading and stood at 14.42.
The sudden slide left the currency with half the value that it had at the end of last year, fueling inflation in a big emerging market economy which depends heavily on imports, Reuters reported
Investors and savers are concerned about recent aggressive monetary easing under which the central bank has slashed its policy rate by 400 basis points since September.
Erdogan has repeatedly advocated for the rate cuts as he promotes a new economic plan prioritizing economic growth, credit, production and exports, despite widespread criticism of the policy from economists and opposition politicians.
