Turkish lira falls to a new record level

The Turkish lira fell to a record low of more than 27.236 against the US dollar on Tuesday due to inflationary pressures and the rise of the dollar, bringing its losses on an annual basis to more than 31%.

President Recep Tayyip Erdogan’s support for a low interest rate policy despite high inflation led to a currency crisis in late 2021 and pushed inflation above 85% last year.

The central bank, which stopped intervening in the foreign exchange market to support the lira as of June, reversed course and made two strong rate hikes in two consecutive months.

The lira has lost about 24% of its value since the bank’s policy changed.