Original title: depreciation of 16% Turkish lira hit a record low against the US dollar Source: CCTV News client
On the 8th local time, the Turkish lira hit another record low against the dollar, once falling to 8.97 lira to the dollar. According to statistics, the lira has depreciated by 16% against the dollar so far this year. Two years ago, the dollar was worth nearly six lira.
Analysts pointed out that the devaluation of the lira that day was related to a Reuters report, which quoted sources as saying that Turkish President Recep Tayyip Erdogan had lost trust in the current central bank governor Sbkafchiolu and was dissatisfied with the central bank's delay in cutting interest rates until September.
But Alton, director of communications and liaison at the Turkish presidential palace, called the Reuters report "false news" on social media.
Erdogan has repeatedly said that high interest rates will hinder economic development. On the 7th, he reiterated his commitment to cut interest rates, saying that he would reduce inflation and interest rates "as before".
On the 23rd of last month, the Monetary Policy Committee of the Central Bank of Turkey announced that it would cut the policy rate by 100 basis points, from 19% to 18%. After the announcement of the interest rate cut, the Turkish lira depreciated, and the exchange rate of the lira against the dollar was once close to an all-time low of 8.8.
The decision to cut interest rates was unexpected, and many experts and media had predicted that the Turkish central bank would keep the existing interest rates unchanged.
At present, Turkey's inflation rate is higher than the policy interest rate set by the Turkish central bank. According to the latest data released by the Turkish Bureau of Statistics, Turkey's inflation rate reached 19.58% in September, the highest in two and a half years.