The Turkish Lira is falling 3%

The Turkish lira fell back to a new record low on Wednesday amid fears of high inflation and other economic repercussions, after it plunged 15 percent the previous day after President Recep Tayyip Erdogan defended recent interest rate cuts.

The lira fell to 13.1500 against the dollar, before falling to 13.05. On Tuesday it touched an all-time low at 13.45.

The Turkish currency recorded record lows in 11 consecutive sessions, bringing its losses since the beginning of the year to 43 percent, including about 24 percent incurred since the beginning of last week.

Although Erdogan has defended the central bank’s monetary policy and vowed to win the “economic war of independence”, criticism is mounting from those calling for action to stem the currency’s decline, including leading economists.

And there is no hint of intervention to stop the collapse. Turkey’s central bank said on Tuesday that it could only do so under certain conditions with “excessive volatility”.