The Turkish lira recorded a new record decline in the direction of the 17

The markets in Turkey opened, on Friday morning, at a new exchange rate for the Turkish lira against the dollar, as it crossed the barrier of 16 and is approaching 17, in a deterioration described as historical and came after two decisions, the first to reduce the interest rate by the Central Bank, and the second to raise the minimum wage by 50 percent for 2022.

For more than three months, this deterioration has become the daily talk of the country's street, and while the Turkish government insists on following its unconventional policy, economic analysts tell Al-Hurra that it is difficult to predict what will happen in the next stage.

On Thursday, the central bank cut the interest rate by 100 basis points to reach the 14 percent limit, while Turkish President Recep Tayyip Erdogan announced the minimum wage, which was set at 4,250 Turkish liras for the next year.

There were conflicting opinions and positions regarding the minimum decision, and while circles close to the Turkish government considered it “in its place and meets the expectations of Turkish citizens,” the opposition parties, led by the Republican People’s Party, considered the new value incompatible with the inflation rate in the country.

The data and statements of Erdogan and his circles indicate that there is no retreat from the current policy of lowering the interest rate, although this is directly reflected in the exchange rate of the lira.

During the past two months, Erdogan has made many media appearances, stressing that he will continue his battle, which he considers part of the "war of economic independence."

In early December, he added in a speech to his ruling party's deputies in parliament: "We are doing the right thing. We have drawn up and are laying down a politically risky but right plan."

In 2020, the minimum wage in Turkey was 2,826 Turkish liras (the equivalent in dollars at the time, 384), and the new limit announced by the government at 4,250 liras is currently equal to (274 dollars).

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