The Turkish lira fell to its lowest level, with continued uncertainty about the results of the presidential and legislative elections in May 14, which could lead to the first political change in twenty years.
The Turkish currency fell to 19.4196 pounds per US dollar, which is unprecedented since the adoption of the new pound in January 2005.
Since the rapid decline in the value of the Turkish currency at the end of 2021, the government has taken measures to support it following its decline due to inflation and capital outflows.
Although inflation has slowed steadily for the past five months, it was still at 50.51% in one year in March, the currency keeps failing, according to economic experts.
Contrary to traditional economic theories, Turkish President Recep Tayyip Erdogan believes that high interest rates promote inflation.
However, this monetary policy contributed to fueling the decline of the Turkish lira and raising the cost of living.
Erdogan, who says he prefers growth and employment over price stability, said at the end of January that inflation will slow down rapidly in his country, reaching 30% in the coming months.
Kemal Kılıçdaroğlu, Erdogan’s main opponent in the presidential elections, promised that if he wins, he will work to restore the independence of the central bank.
The outgoing president’s economic toll has weakened his bid for re-election, with even recent opinion polls giving his main opponent a slight lead.