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Turkish lira falls to record low and halts talk of interest rates rise

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Turkish lira falls to record low and halts talk of interest rates rise


The Turkish lira fell to a record low curtailing talk of a possible interest-rate increase in the country. The currency weakened as much 1.8 percent to 2.18 percent against the dollar by mid-afternoon on Thursday – its lowest for over 35 years.

The benchmark stock index lost 2.7 percent with one analyst predicting no end to the depreciation pressures.

The fall comes as the investigation into a corruption scandal has increased pressure on Prime Minister Recep Tayyip Erdogan. In his end of year address the PM spoke of foreign-backed elements posing a threat to the people of Turkey.

He has named a new cabinet after police detained businessmen close to the government and the sons of three ministers earlier this month.

Erdogan purged 70 officers connected with the inquiry and blocked a second investigation into projects promoted by him.

Throughout the holiday period there have been demonstrations calling for Erdogan who has held office for 11 years to step down.

President Abdullah Gull in a New Year’s message emphasised the need for an independent judiciary free from pressure from any side.

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