Turkey’s lira hits record low after Erdogan defends rate cuts
Overall, the currency has lost about 40pc of its value against dollar since the start of year.
Following a record 15 per cent crash yesterday, Turkish lira firmed 3 per cent today as other emerging market stocks looked to snap a five-day losing streak.
The lira which dropped to 13.45 a dollar for the first time yesterday, strengthened three per cent to 12.3 against the greenback.
The Turkish currency had hit record lows in 11 consecutive sessions, bringing its losses since the beginning of the year to 43 per cent.
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On Tuesday, the Central Bank of the Republic of Turkey (CBRT) had said that it is witnessing unhealthy price formations in forex markets. It added that the unhealthy price formations are unrealistic and totally detached from economic fundamentals.
In a statement, the lender said that it imposes a floating exchange rate regime, which is independent of all exchange rate levels. It added that floating exchange rate regime may intervene only in excessive volatility without any permanent direction.
The Turkish lira’s yesterday’s slide was the largest since 2018.
