Losing 30% of its value to dollar, Turkish lira continues to deteriorate

NEWS DESK

The Turkish lira is witnessing more deterioration as it lowed 5% to the American dollar amid concern over the new government of Recep Tayyip Erdogan’s statements about the interest rates.

The lira’s price is being circulated at 4,94 for dollar, with 4,7% daily loss, concerns have arisen as its deterioration to 5 liras to the dollar hits record low for the first time in Turkey’s history. 

The currency had recorded a low exceeding May’s before an exceptional meeting for the Central Bank during which Erdogan resolved on raising the interest’s rates.

On Monday, Erdogan appointed his son-in-law Berat Albayrak minister of treasury in his new term’s government raising worries through the fiscal markets due to his sudden transfer from the energy ministry.

Fears have arisen after Erdogan underestimated the inflation’s risks that exceeded 15% in June in a record low since a decade and half.

Turkish newspapers have quoted, including Huriyet, from Erdogan “we will see a decrease of interest’s rates”, warning that high interests could harm jobs.

Till now, the Turkish lira has lost 30% of its value to the dollar this year.

J.O

ANHA