ANKARA, TURKIYE (AP) – The Turkish lira tumbled to a fresh record low yesterday, extending its slide against the US dollar since President Recep Tayyip Erdogan started his third term.
The lira weakened by over six per cent yesterday hitting 23.15 against the dollar. The decline took the currency’s loss since the appointment of Erdogan’s new government to eight per cent. The currency weakened by around 20 per cent since the start of the year.
The Turkish currency has declined in value since 2021 due to what economists said is Erdogan’s insistence on keeping borrowing costs low to stimulate growth despite skyrocketing inflation.
The policy runs contrary to conventional economic approaches that call for higher interest rates to tame inflation.
On Saturday, Erdogan reappointed Mehmet Simsek, an internationally respected former banker, as treasury and finance minister in his new Cabinet.
The appointment was viewed as a sign that Erdogan’s new administration might pursue more conventional economic policies.
Simsek, a former Merrill Lynch banker who previously served as finance minister and deputy prime minister under Erdogan, returned to the Cabinet after a five-year break from politics.
