Today, Monday, the Turkish lira embarrassed Turkish President Recep Tayyip Erdogan, in a shocking new development of its exchange rates, after it touched a record low last week.
According to the agency “Reuters”; The Turkish lira fell 0.8 percent against the dollar, while the central bank continued to raise some borrowing costs through back channels to stabilize the foreign exchange market.
Erdogan had mentioned that the exchange rates and gold would stabilize at their correct levels, and that the current fluctuations are temporary, after the lira plunged to record low levels for two consecutive days.
The Turkish lira, which fell in seven of the last 10 trading days, was down 7.34 against the dollar at 8.00 GMT.
The lira reached a historic low during transactions at 7.3650 on Friday, and is among the worst performing in emerging markets this year, down 19 percent.
The economy is expected to contract this year due to the repercussions of the Coronavirus, and a further decline in the value of the lira may lead to higher inflation and deepen deflation.
The Turkish central bank had moved in recent days to adjust market financing by tightening credit a little, but it kept the main interest rate at 8.25 percent.