China News Service, November 24, according to foreign media reports, on November 23 local time, the Turkish currency lira plummeted by more than 15%.
Earlier, Turkish President Erdogan explained the recent sharp interest rate cuts and asked the Central Bank of Turkey to shift to a positive easing cycle.
According to reports, on the 23rd, the lira fell the most since the peak of the currency crisis in 2018.
Recently, the exchange rate of the lira against the U.S. dollar fell to 13.45, hitting a record low in 11 trading days. After that, it reduced some of its losses and closed down 10.2% to 12.7015. Since 2021, the lira has fallen by 42%, including since the beginning of last week. A decline of more than 22%.
Data map: Turkish President Erdogan.
Photo by China News Agency reporter Sheng Jiapeng
The Central Bank of Turkey cut the policy interest rate by 100 basis points to 15% last Thursday, which is well below the inflation rate of nearly 20% and signaled further easing.
At a press conference on the 22nd, Turkish President Erdogan stated that tightening monetary policy will not reduce inflation.
He said, "I oppose policies that will shrink and weaken our country, and plunge our people into unemployment, hunger and poverty."
Erdogan asked the central bank of Turkey to shift to a positive easing cycle.
He said that this is to promote exports, investment and employment.
Société Générale de France stated that the central bank of Turkey needs to raise interest rates in an "emergency" next month at the earliest and raise the policy interest rate to about 19% by the end of the first quarter of 2022.
Erdogan received the support of his parliamentary ally and the leader of the Nationalist Action Party (MHP) Bacchili on the 23rd.
Bacchielli said that high interest rates restrict production, and there is no other choice but investment-oriented policies.
Bacchili said, "Turkey needs to get rid of the burden of interest rates."