On Tuesday, August 25, 2020, the Turkish lira fell to a new record low against the US dollar, as it came under more pressure despite efforts by the central bank to tighten credit, and as tension increases between Ankara and Athens over disputed marine resources. </p><div> <p>The pound fell more than 0.3 percent to 7.4035 against the dollar by 1411 GMT, from 7.38 at the close in the previous session. The previous record low for the pound during trading was 7.4, it was recorded on August 18th.
The central bank adjusted its financing tools to increase borrowing costs, despite keeping its interest rate policy stable at 8.25 percent.
Adding to investor concerns about Turkey’s depleted foreign exchange reserves and its costly intervention in the currency market, a threat to the European Union with sanctions looms as tensions increase between Turkey and Greece in the eastern Mediterranean.