The Turkish lira exchange rate against the US dollar continues to fall after the Turkish Central Bank’s decision, hitting a historic low during November 23 trading, Report informs.
As of 12:02 a.m. (GMT+4), the dollar/lira exchange rate rose to 11.88 lira per dollar, which became a new anti-record.
On November 18, the Central Bank of Turkey decided to reduce the discount rate to 15% from 16%. On November 22, Turkish President Recep Tayyip Erdogan in a televised address again spoke in favor of lowering the discount rate.
Earlier, Financial Director of Eko Faktoring Arda Tunca said that the reduction in the discount rate by the Central Bank of Turkey against the background of a record fall in the lira exchange rate contradicts the norms of economic science and can only be explained by a religious approach.
He added that the cost of servicing external debt in the context of the depreciation of the lira is becoming higher. In addition, the rate cut leads to an even greater rise in inflation.