The Turkish Lira Continues to Record Low Historical Levels

Turkey’s lira dropped to a record low on Monday as a stronger U.S. dollar weighed on emerging market currencies, a

After President Recep Tayyip Erdogan fired three central bank policymakers, the Turkish lira fell to a new record low against the dollar, with investors worried about the prospects of further monetary easing despite rising inflation.

The lira lost as much as 0.4% of its value to an all-time low of 9.2250 against the US currency, recorded 9.2100 after the opening of European markets. The Turkish currency has plunged 19% so far this year.

Two of the three central bank officials dismissed on Thursday were opposed to cutting the interest rate by 100 basis points to 18 percent last month. Their dismissal was considered a prelude to further easing monetary policy as soon as next week.

Analysts saw the move as further evidence of political interference by Erdogan, who has previously described himself as an enemy of interest rates and often urges monetary stimulus.