Turkish Lira Hits New Record Low Following Erdogan's Comments

Following President Recep Tayyip Erdogan's remarks on the depreciation of the Turkish lira during a television broadcast, the currency has recorded yet another historic low.

On November 30, during a live broadcast, Erdogan commented on the continuous depreciation of the national currency, once again stating that his government is pursuing a policy of lowering interest rates. According to the Turkish President, they have adopted a new economic model in which they reduce the refinancing interest rate to support local producers and boost exports, as reported by Ermenihaber.

After Erdogan's comments, the exchange rate of the Turkish lira against the dollar surged, reaching 13.96, marking another historical low. However, the exchange rate has since partially recovered, standing at 13.45 lira per dollar at this moment.

It is notable that according to Reuters, the lira has depreciated by approximately 40% this year, with around 20% of that decline occurring just since last week. This latest round of depreciation began after the Turkish central bank lowered the interest rate from 16% to 15% on November 18, after which President Tayyip Erdogan has repeatedly advocated for further interest rate reductions.