Turkish lira rates 12th Oct 2021: The Turkish currency weakened to a record low of 9.03 against the U.S. dollar on Tuesday, amid concerns over the central bank’s recent monetary policy.
During September, the Turkish Central Bank unexpectedly cut its benchmark interest rate by 100 basis points and reduced the policy rate (one-week repo auction rate) from 19 percent to 18 percent.
Before the interest rate cut, however, the exchange rate was at 8.30 for one dollar.Experts argued that shifting towards an easing policy despite the high inflation caused the national currency to weaken.
Foreign investors decreased their investments in Turkey by approximately 3.5 billion dollars in the week following the interest rate cut, said press reports, quoting the central bank’s data.
The country has been battling double-digit inflation and a weakening currency, which has lost more than half of its value since 2018. Annual inflation climbed to 19.58 percent in September, mainly driven by soaring food prices.
Fahad is an entrepreneur and a marketing enthusiast who loves to write on trending topics. He loves travelling & playing tennis is what he does in his leisure time. He tweets @fahad164.
Email:- fahad164@gmail.com , fahad@themediaparadigm.com
