Turkey, the lira collapses after Erdogan's decision to expel 10 ambassadors
Turkey, the Lira collapses after a reversal to the Central Bank.
S&P: FX reserves close to zero
Turkey, central bank raises rates.
The lira reverses course and flies
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November 23, 2021 Turkish lira plunges after President Recep Tayyip Erdogan praised the recent interest rate cut and declared that the country is fighting "a war of economic independence".
The currency lost up to 9% against the dollar, hitting a minimum below the symbolic threshold of 12 lire per greenback: this is the most marked decline since August 2018 and brings the balance from the beginning of the year to -40%.
Erdogan said he was 'satisfied' with the third interest rate cut announced by the Central Bank despite an inflation rate now at 20%.
The devaluation continues at a sustained pace since last week, when the Central Bank of Ankara again lowered its benchmark interest rate, bringing it to 15%, causing a collapse of the national currency.
Turkish President Recep Tayyip Erdogan had again defended the Central Bank's choice last night, arguing that the current exchange rate of the Turkish lira produces investments and increases jobs. "We will win this war of economic independence," said the Ankara leader, criticizing experts who disagree with his view of the economy.
Today, former Deputy Governor of the Central Bank Semih Tumen, dumped by Erdogan's decision only a few weeks ago, launched an appeal on Twitter to stop "the irrational experiment on the Turkish lira".