Turkey: Lira plummets to “insane” historic low after Erdogan sparks sell-off

Source: CNBC

“Turkey’s lira dropped to another record low of 12.49 to the dollar on Tuesday, a level once unfathomable and well past what was just last week deemed the ‘psychological’ barrier of 11 to the dollar. … The sell-off was triggered after Turkish President Recep Tayyip Erdogan defended his central bank’s continued contentious interest rate cuts amid rising double-digit inflation. He labeled the move as part of an ‘economic war of independence,’ rejecting calls from investors and analysts to change course. Inflation in Turkey is now near 20%, meaning basic goods for Turks — a population of roughly 85 million — have soared in price and their local currency salaries are severely devalued. The lira has lost nearly 40% of its value this year and 20% since the start of last week alone, according to Reuters.” (11/23/21)