Turkey – Lira Crashes – Economy

One day after the sharp cut in interest rates in Turkey, the currency’s slide continued at a rapid pace. Record lows were reached in trading with the US dollar and the euro on Friday. For a dollar, 9.66 lira had to be paid for one dollar and 11.25 lira for one euro, which is more than ever before. With its interest rate cut, the central bank apparently gave in to pressure from President Recep Tayyip Erdogan. Since it became known on Thursday that the Turkish central bank cut the key interest rate by two percentage points to 16 percent despite high inflation, the lira has lost around 3.5 percent of its value in trading with the euro.