The Turkish lira has been rising in value since May and was even the best performing currency in the world. This increase seems to be coming to an end after the resignation of the Turkish central bank’s governor. There is growing concern that the Turkish government will continue to interfere with the central bank’s interest rate policy.
Since September, the Turkish central bank, headed by Murat Cetinkaya, has refused to lower interest rates from their current level of 24 percent. This high interest rate is intended to support the lira. Erdogan wants to tackle inflation by lowering interest rates.
It is clear that the independence of the Turkish central bank is at stake. The Turkish lira is showing a 1.5% decline in relation to the euro around noon on Monday.Leave a comment