Turkish Lira Slumps to New Historic Low of 14 Lira Per Dollar
08:10 GMT 13.12.2021 (Updated: 08:16 GMT 13.12.2021)
MOSCOW (Sputnik) - Turkish national currency continued its meltdown on Monday, hitting 14.1 lira against the dollar, trading data shows.
Monday trading opened at 13.87 lira to the dollar but as of 06:40 GMT, it slumped to 14.1. Experts connected that to the new reduction in the borrowing costs imposed by the central bank of Turkey.
The Turkish currency has lost almost 50% of its value over the past year, and on November 23 fell from 11.4 to 13.2 against 1 US dollar, its largest devaluation in 20 years. This led to protests in several large cities, including Istanbul and Ankara, and prompted calls for the government to resign.
Turkish President Recep Tayyip Erdogan believes that a policy of gradual key rate decrease will help Turkey lower inflation. Opposition politicians demanded that the 2023 election should be moved closer after accusing the president of dragging the country into an economic crisis. Erdogan said the election would be held as scheduled.