Turkish lira falls to a record low after Erdogan’s comments on interest rates

Turkey’s economic sector is still in a state of suspense after the elections are concluded and Turkish President Recep Tayyip Erdogan takes power with absolute powers.

The Turkish lira fell to a record low against the dollar in Asian trade to reach 4.9767 lira to the dollar before it narrowed its losses on Thursday on concerns about economic management and monetary policy under Turkey’s new, stronger executive.

The lira has suffered a major decline in recent times.

The lira has lost about 22 percent of its value against the dollar since the beginning of this year as investors fear Turkish President Recep Tayyip Erdogan’s influence on monetary policy and his repeated calls to cut interest rates.

“We have a lot of tools, I think we will see a decline in interest rates in the coming period”, the Turkish newspaper Hurriyet quoted Turkish President Recep Tayyip Erdogan as telling reporters after his first foreign tour since his inauguration.

The central bank’s monetary policy committee is due to meet on July 24.

The commission has raised interest rates by 500 basis points since April in a bid to shore up the currency.

According to the Asian market, the exchange rate fell to 4.9767 before rising to 4.8300 by 06:15 GMT Thursday.

Today friaday 13th Turkish lira rate is set to 4.8244