The Turkish Lira Drops 4%, Approaching Record Lows

The Turkish lira fell more than 4% against the dollar in weak and volatile trading Monday, November 29, approaching record lows hit last week when President Recep Tayyip Erdogan insisted he was sticking to his policy of cutting interest rates despite widespread criticism.

The lira fell until its value reached 12.85, from a close at 12.25 on Friday, and liquidity was low with an increase in the disparity between the buying and selling prices, just as happened in the trading of last week.

Last Tuesday, the Turkish currency hit a record low of 13.45 after Erdogan defended the central bank’s move to cut interest rates to 15% despite rising inflation.