Turkey’s currency crashes as President warns of ‘economic war’
The Turkish lira plunged to record lows Tuesday after President Recep Tayyip Erdogan stuck to his support for interest rate cuts, warning his country was in a “war of economic independence”. The Turkish currency exchanged hands at more than 13 lira to the dollar, a 15 percent fall, before recovering slightly from the historic drop.
Turkey is facing the worst currency crisis since August 2018 when the value of the lira hit historic lows after a row with then US president Donald Trump.
The Turkish central bank on Thursday bowed to pressure from Erdogan and cut its policy rate from 16 to 15 percent despite rising inflation and a fast-depreciating currency.
Erdogan, an outspoken opponent of high interest rates, has always built his popularity on a reputation of forging strong economic growth and improving the income of families across the country.
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