The fall in the lira is due to the fact that Erdogan fired central bank governor Naci Agbal over the weekend, who in less than five months managed to win the market's trust and was praised by foreign investors.

So why did Erdogan fire him? 

High interest rates ideological stick horse for Erdogan

Everything boils down to President Erdogan's stubborn struggle against high interest rates.

Although economic expertise suggests that it is a bad recipe for Turkey's economy, which is suffering from high inflation.  

The fired central bank governor followed the experts' path and raised interest rates, after which the lira strengthened and foreign investors flocked.  

But that did not get Erdogan to change his mind.

High interest rates are said to be "the root of all evil".

It is an ideological stick horse that he constantly returns to.

His immediate circle often speaks of a "war against the interest rate lobby" and pro-government newspapers portray critical economists as traitors.

Recently, Erdogan has really been on the offensive and the central bank governor is not alone in feeling the president's uncompromisingness.  

The news that Turkey is leaving the Istanbul Convention, which unites countries to fight men's violence against women.

It has aroused sharp criticism from the outside world, even Joe Biden criticized the decision.  

It did not get any better when Turkey justified the decision by accusing the convention of "normalizing homosexuality".  

Clear signal from Erdogan

Last week, a process was also launched to ban the pro-Kurdish party HDP, Turkey's third largest party.

Which aroused a wave of criticism from Sweden, among others. 

The signal from Erdogan is clear.

He attacks on all fronts and refuses to give in to anyone.

The objections of the outside world are not an obstacle, rather it acts as a proof of nationalist will to fight that arouses support in the supporter camp.  

There are many indications that Erdogan coldly expects a "cultural war" against liberal-minded citizens only to benefit him in conservative Turkey.  

But the bad economy is dangerous for Erdogan.

High unemployment and growing poverty risk becoming serious problems for him in the next presidential election in two years.  

The question is whether it then helps to ban the TV channels from showing troublesome exchange rates.