New historical low for the Turkish currency at 9.1 lire against the dollar

The Turkish lira recorded a new decline of 0.6% to one level record of 9.1 against the US dollar, under the pressure of a number of political and economic factors, in particularly the geopolitical tensions on the border with northern Syria.

The lira crisis deepens with the rise in the dollar supported by fears about global inflation and the expected tightening of the US central bank.

The Turkish lira extended its decline to an all-time low after President Recep Tayyip Erdogan hinted at possible military intervention, after saying Turkey was determined to eliminate threats from northern Syria.

While Ankara has been involved in the conflict for years, the move threatens to fuel tensions with the United States, which supports Kurdish militants in a region opposed by Turkey.

The data showed that inflation in Turkey rose slightly less than expected to 19.58% up Annual basis in September, the highest level since March 2019, with returns Real losses are further losses after the central bank cuts the interest rate to 18%.

Analysts saw the easing of monetary policy as new evidence of the political interference of President Recep Tayyip Erdogan, a staunch opponent of high interest rates who called for monetary stimulus despite a sharp rise in prices.

Citing sources, Reuters reported last week that Erdogan was furious that the easing of monetary policy had lasted so long and that he was losing confidence. in Kavcioglu less than seven months after the ouster of his predecessor.

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