Istanbul-Sana
The Turkish lira plunged to a new record low against the US dollar.
Reuters reported that the Turkish currency, which is the worst performer among emerging market currencies this year, touched its lowest level ever yesterday at 9.35 against the dollar, before closing at 9.34.
The Turkish currency has lost 20 percent of its value this year, and half of this decline has come since the beginning of last month, when the central bank began giving easing signals, despite inflation rising to around 20 percent.
The President of the Turkish regime, Recep Tayyip Erdogan, has been pressuring the Central Bank to facilitate monetary policy, and analysts consider that his intervention has eroded the credibility of monetary policy in his country in the past few years.
A surprise rate cut of 100 basis points last month sent the Turkish lira sharply lower.