Turkish lira is falling to a new record level

The Turkish lira fell to a new record low on Monday as investors awaited clues about monetary policy moves after the appointment of a new central bank chief who is expected to raise interest rates.

The lira fell 1.3 percent at 23.65 against the dollar at 0834 GMT, after hitting a low of 23.77 against the dollar overnight. The currency has lost more than 21 percent of its value this year.

President Recep Tayyip Erdogan on Friday appointed Hafiza Ghaya Erkan to head the central bank. Previously, she held the position of Co-Chief Executive Officer of the First Republic Bank of the United States. It is widely expected to change current policies and raise interest rates after cutting them for years.

JPMorgan said on Monday that it expects Turkey’s central bank to raise interest rates to 25 percent from the current 8.5 percent at its meeting this month. It is the first meeting Arkan will hold after assuming her position. He added that directives could be put forward for smaller increases in the future if necessary.