Turkish Lira is witnessing one of the worst phases in history. The currency has suffered a downward slope for a large period. It slumped to the lowest of Thirteen Lira just a few days ago. Fortunately, the currency salvaged some of its amounts recently. The drop is estimated to be at fifteen percent. Tayyip Erdogan is the President of Turkey. He had taken some controversial decisions over the past few months. He ordered Turkish banks to opt for slashed interest rates recently. Since the month of September, the rate of interest has been cut three times. This was the most number of cuts in recent times.
The decision to slash the interest rates has been backed by the President. He stated that the cut was needed in order to help the economy flourish. However, analysts have criticized the move heavily. They have held this decision responsible for the huge inflation. The rate of inflation currently stands at twenty percent in Turkey. All these factors have added up to make the Turkish Lira lose its price. The currency has now suffered a low for a continuous period of eleven days.
Turkish Lira Fall Significantly Behind Dollar
The Turkish Lira has made a record this year. A record for which no Turks would feel happy. The Lira has lost a total of forty-five percent monetary value in the year. They have been termed as the most poorly performed currency in the whole world. Investors are not looking confident and refrained from investing.
Despite all the chaos, President Erdogan is unmoved. He backed his decision of lowering the rate of interest. Erdogan stated that a higher rate of interest will not do any good to inflation. In fact, it will make matters even worse. He felt that higher rates will increase the rate of unemployment and hunger issues in Turkey. As of now, he needs to work on bringing up the value of the Turkish Lira soon.