The Turkish currency has been on a downward trend recently but traded at record lows on Tuesday.
The Turkish Lira has now crashed to record levels in what some have described as “unfathomable” when it traded at 13.44 to the dollar on Tuesday. The nation’s currency has experienced a very sharp decline in 2021 with blame being laid at the doorstep of its central bank’s questionable monetary policy. The selloff that triggered this sharp fall in the ancient currency’s value was caused by Turkish President Recep Tayyip Erdogan’s sharp defense of the central bank’s continued low-interest rate that is not informed by any consistent economic approach.
Although the currency’s decline has also been helped along by the geopolitical tensions surrounding the country as well as rising debts, current account deficits and its shrinking currency reserves have all combined to compound the country’s mounting economic woes. The country’s economic policies that have been dependent on the political inclinations of the country’s president seem to be its biggest undoing.
Recently commenting on Twitter, the country’s former central bank deputy governor said, “We need to abandon this irrational experiment, which has no chance of success and return to quality policies that will protect the value of the Turkish lira and protect the welfare of the Turkish people,” according to a translation.
“Babafemi Busari is a passionate writer whose experience writing across several niches bring unique perspectives to familiar subjects.”
Pulse Contributors is an initiative to highlight diverse journalistic voices. Pulse Contributors do not represent the company Pulse and contribute on their own behalf.
Right to use: The material of this site is published with good intentions. Please CONTACT OUR DCMA email @firstname.lastname@example.org to email us to submit a complaint if you have this material and think that your copyright was violated or infringed. Please provide evidence of ownership and reasons why your message should take action