Turkish Lira Records Historic Decline

The exchange rate of the Turkish lira against the dollar has recorded a new historic low after the Central Bank of Turkey decided to reduce its benchmark interest rate. According to stock market data, as of 15:03, one dollar was set at 8.79 lira, the lowest value ever.

The last time the lira faced such a significant collapse against the American currency was on June 22, 2021. On September 23, the Central Bank lowered the interest rate by 100 basis points from 19% to 18%, despite the rapid rise in inflation and forecasts from experts.

This decision by the Central Bank aligns with the stance of Turkish President Recep Tayyip Erdoğan, who is openly opposed to raising the benchmark interest rate. The Turkish leader believes that an increase in rates would stimulate inflation.