Turkish lira is declining again, and the concern about high inflation continues

Turkish lira fell five percent on Monday, after it witnessed its worst performance in 2021 since President Recep Tayyip Erdogan came to power nearly 20 years ago, with continuing fears of high inflation and unconventional monetary policy.

Reuters reported that the Turkish lira fell to 13.92 liras to the dollar, after it closed on Friday at 13.1875 liras to the dollar.

This comes at a time when the government is facing difficulties in persuading savers to ignore currency fluctuations, fears of high inflation and unconventional interest rate cuts.

Earlier, economists had expected Turkey’s annual inflation rate to exceed 30% in December for the first time since 2003, with prices rising due to record fluctuations in the Turkish lira.


Arab Observer




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